2027 401(k) Limits: IRS Raises Contribution Cap to $25,500
The IRS has announced the 2027 401(k) limits. In a news release on November 12, 2026, the agency said workers can put up to $25,500 into a 401(k) next year. That is $1,000 more than in 2026. However, the limit for individual retirement accounts (IRAs) stays the same at $7,500.
The 2027 401(k) limits at a glance
The new limits apply to 401(k), 403(b), most 457 plans and the federal Thrift Savings Plan.
| Limit | 2026 | 2027 |
|---|---|---|
| Employee contribution | $24,500 | $25,500 |
| Catch-up, age 50 and older | $8,000 | $8,500 |
| Total for age 50 and older | $32,500 | $34,000 |
| Higher catch-up, ages 60 to 63 | — | $11,750 |
So a worker aged 60 to 63 could contribute up to $37,250 in 2027, counting the higher catch-up amount.
IRA limits stay the same
For IRAs, the numbers do not change in 2027:
- IRA contribution limit: $7,500
- IRA catch-up, age 50 and older: $1,100
That means savers 50 and older can still put up to $8,600 into an IRA.
Higher income limits for Roth and traditional IRAs
Even though the IRA contribution limit holds steady, the income ranges move up. These ranges decide who can contribute to a Roth IRA and who can deduct traditional IRA contributions.
Roth IRA phase-out ranges:
- Single or head of household: $158,000 to $173,000 (up from $153,000 to $168,000)
- Married filing jointly: $250,000 to $260,000 (up from $242,000 to $252,000)
Traditional IRA deduction phase-outs, if covered by a workplace plan:
- Single: $83,000 to $93,000
- Married filing jointly: $133,000 to $153,000
- Not covered, but married to someone who is: $250,000 to $260,000
In other words, more people will be able to contribute to a Roth IRA in 2027.
Saver’s Credit and SIMPLE plans
The Saver’s Credit rewards lower- and moderate-income workers for saving. For 2027, the income limits rise to:
- $83,000 for married couples filing jointly
- $62,250 for heads of household
- $41,500 for single filers
Meanwhile, the limit for SIMPLE retirement accounts, often used by small businesses, rises to $17,500 from $17,000. Full details are in IRS Notice 2026-66.
How to use the 2027 401(k) limits
A higher limit only helps if you use it. Here are a few simple steps:
- Update your contribution rate in January. Many plans do not raise your savings automatically.
- Get the full employer match. At a minimum, contribute enough to collect any match. It is part of your pay.
- Spread contributions across the year. Some plans only match each paycheck, so maxing out early can cost you match dollars.
- Check your Roth eligibility. With higher income limits, you may now qualify.
- Self-employed? Look at your options. Solo 401(k) and SIMPLE plans can let business owners save more. Our guide on how to get an EIN is a good first step for new owners.
Also, the IRS recently released the 2027 tax brackets. Together, these changes can help you plan how much to save and how much tax you may owe.
The bottom line
The 2027 401(k) limits rise to $25,500, with catch-up limits of $8,500 for savers 50 and older and $11,750 for those 60 to 63. The IRA limit stays at $7,500, but the Roth income limits go up. Update your contributions early in the year to make the most of the new room.
This article is for general education only and is not tax or investment advice. Figures come from IRS News Release IR-2026-136.
