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Financial Professionals Retirement plans compliance news and monthly newsletters Retirement plans compliance newsletter for December 2025
Retirement plan compliance newsletter for December 2025
  • PBGC Present Value of Maximum Guarantee

    PBGC announced the 2026 present value of maximum guarantee.

  • 2026 Dollar Limits

    Various IRA and qualified retirement plan annual limits announced for 2026.

  • Missouri Disaster Relief

    The IRS and PBGC issued disaster relief for certain deadlines until March 30, 2026, in parts of Missouri.

PBGC Present Value of Maximum Guarantee

Pension Benefit Guaranty Corporation (PBGC) announced the flat and variable rate premium amounts for 2026 which are outlined within the November 2026 Compliance Newsletter. Outlined below are the 2026 levels for the present value of maximum guarantee that was yet to be announced.

2026 Levels

When a defined benefit plan’s Adjusted Funding Target Attainment Percentage (AFTAP) is at least 60% but less than 80%, the plan must generally limit accelerated benefits, like lump sum distributions, to the lesser of:

  • 50% of the payment that would be paid if the restriction did not apply, or
  • The present value of the PBGC maximum guarantee

Outlined below are a few key retirement ages for the present value of the maximum guarantee for 2025 and 2026.

Age20252026
55$638,666$612,778
62$941,946$953,870
65$1,116,784$1,137,547
67$1,287,277$1,315,433
73$2,207,850$2,277,003

The maximum guarantee is adjusted for different ages. A complete table for ages 25 through 85 can be found at pbgc.gov.

Disaster Relief

The contributions and retirement benefits for qualified retirement plans and Individual Retirement Arrangements (IRAs) are subject to certain limits that are adjusted by the Secretary of the Treasury annually for cost-of-living increases. Highlighted below are the various 2025 and 2026 limits that impact IRAs and retirement plans.

Deferral and Catch-up Contribution Limits

Limit20252026
Plan Deferral$23,500$24,500
Catch-up* (individuals aged 50 or over)$7,500$8,000
Catch-up*, ** (individuals who attain age 60, 61, 62, or 63 in the calendar year)$11,250$11,250
SIMPLE IRA/SIMPLE 401(k) Deferral$16,500$17,000
SIMPLE IRA/SIMPLE 401(k) Catch-up (individuals aged 50 or over)$3,500$4,000
SIMPLE Plan Catch-up*, ** (individuals who attain age 60, 61, 62, or 63 in the calendar year)$5,250$5,250

*401(k), 403(b), Governmental 457(b) retirement plans**Qualifying individuals are limited to the higher catch-up limit (for example, a 61-year old in a 401(k) plan that allows for both catch-up limits is limited only to $11,250 catch-up).

Compensation Limits

Limit20252026
Compensation Limit$350,000$360,000
Defined Contribution §415 Limit$70,000$72,000
Defined Benefit §415 Limit$280,000$290,000
Key Employee Officer$230,000$235,000
Highly Compensated Employee$160,000$160,000
Governmental Plan Compensation Limit$520,000$535,000
ESOP §409(o) Limits$1,415,000 $280,000$1,455,000 $290,000
Roth Catch-up Wage Threshold$150,000To be determined
Pension-Linked Emergency Savings Account$2,500$2,600
Domestic Abuse Distribution Maximum$10,300$10,500

IRA Limits

Limit20252026
Contributions to traditional or Roth IRA$7,000$7,500
Catch-up Contributions to traditional or Roth IRA (individuals aged 50 or over)$1,000$1,100
SEP-IRA Contribution (employer only)$70,000$72,000
Deductibility phaseout for IRA contributions for those with a retirement plan at work (Single)$79,000-$89,000$81,000-$91,000
Deductibility phaseout for IRA contributions for those with a retirement plan at work (Married Filing Jointly)$126,000-$146,000$129,000-$149,000
Roth IRA Direct Contribution Limit phaseout (Single)$150,000-$165,000$153,000-$168,000
Roth IRA Direct Contribution Limit phaseout (Married Filing Jointly)$236,000-$246,000$242,000-$252,000

Social Security

The Social Security Administration (SSA) announced an increase in the taxable wage base (TWB) for 2026 to $184,500 (was $176,100 in 2025). Workers pay Social Security tax on wages up to the TWB and some retirement plans use the TWB when allocating contributions or calculating benefits.

HSA Contribution Limits

Although not a formal retirement plan, health savings accounts (HSA) often factor into retirement savings. The IRS announced the updated limits earlier this year. These apply to individuals under a high-deductible health plan (HDHP). The minimum deductibles and maximum out-of-pocket expenses the IRS uses to define HDHPs are outlined below, as well.

Limit

Individual

Family

2025

2026

2025

2026

HSA Contribution Limits$4,300$4,400$8,550$8,750
Minimum Deductible for HDHPs$1,650$1,700$3,300$3,400
Maximum Out-of-Pocket Expenses$8,300$8,500$16,600$17,000
Missouri Disaster Relief

In response to straight-line winds, tornadoes, and flooding that began March 30, 2025, the Internal Revenue Service (IRS) and Pension Benefit Guaranty Corporation (PBGC) extended various deadlines for impacted businesses and taxpayers in Missouri.

Impacted Areas and Dates

Individuals who reside or have a business in Bollinger, Butler, Cape Girardeau, Carter, Cooper, Douglas, Dunklin, Howell, Iron, Madison, Maries, Mississippi, New Madrid, Oregon, Ozark, Pemiscot, Reynolds, Ripley, Scott, Shannon, Ste. Genevieve, Stoddard, Texas, Vernon, Washington, Wayne, and Webster Counties may be eligible for certain deadline relief for deadlines that fall on or after March 30, 2025, and before March 30, 2026. Deadlines are extended to March 30, 2026.

Impacted Deadlines

Below is a partial list of retirement-impact tax filing and payment deadlines that may be extended:

  • Retirement plan loan repayments may be temporarily paused under Internal Revenue Code section 72(p)(2)
  • Required minimum distributions under Internal Revenue Code section 401(a)(9)
  • The 10% additional income tax continues to not apply even if the following is missed during the relief period:
    • Substantially equal payments made over the participant’s life or joint lives of the participant and designated beneficiary
    • Deadline for using a distribution from an IRA for a first-time home purchase by the close of the 120th day after the distribution is received
  • Prior tax year contribution deadlines for retirement plans
  • Indirect rollover distribution deadlines
    • 60-day rollovers
    • Rollover of qualified loan offsets
  • Refunds as a result of
    • Excess deferrals
    • ADP/ACP non-discrimination testing
    • Eligible automatic contribution arrangement (EACA) withdrawals
    • Excess IRA contributions
  • Deadline for recontributing qualified reservist distributions
  • Form 5500 and Form 8955-SSA filing
  • Form 5948 for IRAs
  • PBGC premium payments
  • PBGC deadlines that are based on the Form 5500 deadline
  • Single Employer Plan Termination Forms 500 and 501

Additional Resources

For any questions related to IRS deadlines and other disaster-related issues, the IRS has a tollfree number at 866-562-5227. For PBGC disaster-related questions, call 800-736-2444 ext. 4136.