This is our final estimate of what the 2027 IRS Limits will be based on the U.S. Bureau of Labor Statistics (BLS) report published October 14, 2026.
With the release of the September 2026 Consumer Price Index (CPI), all 12 monthly CPI figures for the year are now available. The IRS is expected to publish the final 2027 limits in the coming weeks. In the meantime, we are providing our final estimate for the 2027 limits.
Figure 1 shows historical rolling 12-month changes in the CPI as of each September 30 (the end of the federal fiscal year (FFY)) through 2026.
Figure 1: Historical 12-month percentage change each September 30, Consumer Price Index, all items, not seasonally adjusted
Source: U.S. Bureau of Labor Statistics.
The CPI as reported by the BLS for the 12 months ended September 30, 2026, was 3.7%, higher than the 3.0% annual change in the CPI as of September 30, 2025 (i.e., the close of the prior FFY). It is higher than the 3.2% average annual change over the past 10 years ended September 30, 2025; and higher than the 2.5% average annual change over the past 20 years ended September 30, 2025.
Based on the reported CPI, we estimate the annual increase factor for the 2027 IRS limits to be about 3.5%. Our final predictions for the 2027 IRS limits are shown in Figure 2 below. Values that changed from the August forecast are depicted in bold.
Figure 2: 2027 IRS Limits Forecast using actual FFY 2026 CPI as of September 30, 2026
| Category of annual IRS limits | 2026 IRS limits | Estimated 2027 IRS limits |
Dollar increase from 2026 |
|---|---|---|---|
| Maximum annual annuity pension for DB plans | $290,000 | $300,000 | $10,000 |
| Maximum annual addition for DC plans | $72,000 | $75,000 | $3,000 |
| Maximum §401(k), §403(b), §457 deferral for DC plans | $24,500 | $25,500 | $1,000 |
| Catch-up contribution limit for DC plans | $8,000 Ages 60 to 63: $11,250 |
$8,500 Ages 60 to 63: $11,750 |
$500 $500 |
| Compensation limit | $360,000 | $375,000 | $15,000 |
| HCE dollar amount | $160,000 | $170,000 | $10,000 |
| Key employee/officer compensation | $235,000 | $245,000 | $10,000 |
| Contribution limit to ESAs for DC plans | $2,600 | $2,700 | $100 |
| Prior-year wage threshold triggering Roth catch-up contributions to DC plans | $150,000 | $155,000 | $5,000 |
| Domestic abuse withdrawal limit | $10,500 | $10,900 | $400 |
Source: https://www.bls.gov/cpi/ retrieved October 14, 2026.
The estimated annual increase for the 2027 IRS limits is approximately 3.5%.
Please contact your Milliman consultant for details and questions about how these limits apply to your retirement plan(s).