The IRS has raised the maximum amount workers can put into a 401(k) in 2027 to $25,500, up $1,000 from this year’s limit. The change reflects an inflation adjustment.
IRA contribution limits will stay at $7,500. For people aged 50 and older, the IRA catch-up limit also remains unchanged at $1,100.
Workers 50 and older who participate in most 401(k), 403(b), governmental 457 plans or the federal Thrift Savings Plan can make catch-up contributions of up to $8,500 in 2027, an increase of $500. That brings their potential annual contributions to $34,000.
Those aged 60 to 63 in these plans can contribute up to $11,750 in catch-up contributions under a provision in the SECURE 2.0 Act of 2022.
The IRS also said income thresholds used to determine eligibility for deductible traditional IRA contributions, Roth IRA contributions and the Saver’s Credit will rise in 2027.
