IRS boosts 401(k) limit to $25,500 for 2027. Here's what changes
The IRS raised the 2027 401(k) contribution limit to $25,500, a $1,000 increase from 2026, and lifted catch-up limits for workers 50 and older.
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The brief
The IRS announced on Thursday that the annual contribution limit for 401(k) plans will rise to $25,500 in 2027, up $1,000 from the 2026 limit, according to KCRA. The same $25,500 limit applies to 403(b) plans, governmental 457 plans, and the federal Thrift Savings Plan. The IRA contribution limit will stay at $7,500 for 2027, unchanged from 2026.
For workers aged 50 and over, the catch-up contribution limit for 401(k), 403(b), governmental 457, and Thrift Savings Plans will increase by $500 to $8,500 in 2027, up from $8,000 in 2026. This means eligible participants 50 and older can contribute up to $34,000 total next year.
A higher catch-up limit of $11,750 applies specifically to employees aged 60 to 63 in those plans, allowing a maximum contribution of $37,250 for 2027. The IRA catch-up contribution limit remains unchanged at $1,100 for 2027.
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Quick answers
What is the new 401(k) contribution limit for 2027?
The IRS set the 2027 401(k) contribution limit at $25,500, a $1,000 increase from 2026.
How much can workers aged 50 and older contribute to a 401(k) in 2027 including catch-up?
Workers 50 and older can contribute up to $34,000 in 2027, combining the $25,500 regular limit and an $8,500 catch-up limit.
What is the special catch-up limit for workers aged 60 to 63 in 2027?
Employees aged 60 to 63 can make a higher catch-up contribution of $11,750, allowing a total 401(k) contribution of $37,250 for 2027.
Coverage (8)
- 401(k) Contribution Limits Are Increasing in 2027. Here's How Much You Can Save The Globe and Mail · 2d ago
- Employees will be able to contribute more to 401(k)s in 2027, IRS says Spectrum News · 2d ago
- IRS announces 401(k), IRA contribution limits for 2027 AOL.com · 2d ago
- 2027 Retirement Contribution Limits: How to Maximize the New $25,500 401(k) Cap and $37,250 Super Catch-Up AOL.com · 2d ago
- IRS announces new 401(k) contribution limit for 2027 KCRA · 2d ago
- 2027 Retirement Contribution Limits—What Changed From 2026 Forbes · 2d ago
- 401(k) Contribution Limit Rises for 2027: What Americans Need To Know Newsweek · 2d ago
- IRS announces new 401(k) limits in 2027 for savers who hit the max Detroit Free Press · 2d ago
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