IRS raises the 2027 401(k) contribution limit to $25,500 and keeps the IRA limit at $7,500
Savers 50 and older can generally put up to $34,000 into most workplace plans in 2027, and income limits for Roth IRAs and IRA deductions rise, the IRS said.
What it means for you
- The employee contribution limit for 401(k), 403(b) and governmental 457 plans and the Thrift Savings Plan rises to $25,500 in 2027, from $24,500 in 2026.
- The catch-up for most savers aged 50 and over rises to $8,500, for a total of up to $34,000. For ages 60 to 63, the higher catch-up is $11,750.
- The IRA limit stays at $7,500, and the IRA catch-up for people aged 50 and over stays at $1,100.
- Income ranges for deducting traditional IRA contributions and for Roth IRA contributions rise, except the unindexed married-filing-separately range. The Roth phase-out for single filers moves to $158,000 to $173,000.
- From 2027, Saver's Match contributions replace the Saver's Credit for retirement plan and IRA contributions, the IRS notice says. The credit remains for ABLE accounts.