The annual employee limit rises by $1,000, while the basic IRA contribution limit stays at $7,500.
Read the storyNovember 12, 2026, 2:06 p.m. Central time.
Workers will be able to put more of their pay into a 401(k) next year under contribution limits announced Thursday by the Internal Revenue Service.
The basic employee limit for 2027 will rise to $25,500, from $24,500 in 2026, the IRS said. The same basic limit applies to 403(b) plans, governmental 457 plans and the federal Thrift Savings Plan.
The annual basic contribution limit for an individual retirement account will remain $7,500. For eligible savers age 50 and older, the IRA catch-up amount stays at $1,100.
IRA contribution and deduction rules depend on factors including income, filing status and whether a saver or spouse has a workplace plan. A higher limit does not mean every household is eligible to contribute the full amount or deduct it.
The standard catch-up contribution for workers age 50 and over in most 401(k), 403(b), governmental 457 and Thrift Savings plans rises to $8,500, from $8,000. That generally brings the potential employee total to $34,000 when the plan permits the extra contribution.
For participants who turn 60, 61, 62 or 63 in 2027, a higher catch-up limit of $11,750 applies to those plans instead, the IRS says. Plan rules and individual circumstances matter, and the catch-up amount is not an employer match.
The announcement sets limits for the 2027 tax year; it does not change the 2026 limits. Workers considering a change can check their plan’s contribution rules, payroll settings and eligibility.
The IRS also adjusted income ranges for Roth IRA eligibility and deductible traditional IRA contributions. The agency’s technical notice provides the full figures and details.
2026: The basic 401(k) employee limit is $24,500. November 12, 2026: The IRS announced its 2027 adjustments. 2027: The basic 401(k) employee limit increases to $25,500.
IRS: 2027 retirement plan limits · IRS: Notice 2026-66 · Milliman: October retirement-limit estimates
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