Updated October 9, 2026. Quick answer: The IRC §415(b) limit on the annual benefit a defined benefit pension plan can pay is $290,000 for 2026, up from $280,000 in 2025, per IRS Notice 2025-67. The 2027 limit is not yet announced; the IRS publishes it in its annual retirement-plan limits notice, expected late October to mid-November 2026 (the 2026 notice is IRS Notice 2025-67). This is a different figure from the elective-deferral limits that apply to 401(k), 403(b), and similar defined contribution plans; a defined benefit plan’s limit is on the pension payment itself, not on how much can be contributed each year.
The IRC 415(b) defined benefit annual benefit limit, 2025-2027
| Year | 415(b) annual benefit limit |
|---|---|
| 2025 | $280,000 |
| 2026 | $290,000 |
| 2027 (Milliman projected) | $300,000 |
A pension-payment cap, indexed the same way as the deferral limits
26 U.S.C. §415(b)(1)(A) caps the annual benefit a qualified defined benefit plan can pay a participant, adjusted for cost of living under §415(d) using the same annual IRS Notice that adjusts the §415(c) defined-contribution limit and the elective-deferral limits for 401(k), 403(b), 457(b), and similar plans. It is a different number governing a different kind of plan: a defined contribution plan limits what goes in each year, while a defined benefit plan limits what comes out as an annual pension, subject to actuarial adjustment for benefits starting before or after the plan’s normal retirement age.
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The 2026 figures on this page were checked against IRS Notice 2025-67 on September 29, 2026. The earlier-year rows were checked against the IRS notice for each of those years.
- IRS Notice 2025-67: the confirmed $290,000 defined benefit plan limit for 2026, up from $280,000 in 2025, read directly from the PDF’s text.
- 26 U.S.C. §415, via the U.S. House Office of the Law Revision Counsel: the codified statutory text of the defined benefit limit and its indexing rule.
2027 projection: Milliman, “2027 IRS Limits Forecast”, July 2026 edition, published August 13, 2026.
Statute: 26 U.S.C. §415(b)(1)(A).
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General information, not tax or legal advice. This page will be updated with the official 2027 figure the day it is announced.