The 401k catch-up contribution limit for workers 50 and older will rise from $8,000 to $8,500 in 2027, the IRS announced on Thursday, November 12, 2026. The increase is $500, and it comes with a bigger move in the base limit, which climbs by $1,000 to $25,500. Put together, a saver age 50 or older can put up to $34,000 into a 401k, 403b, governmental 457 or Thrift Savings Plan account next year, compared with $32,500 in 2026. The new figures appear in IRS Notice 2026-66. Nothing changes for this year, so the $8,000 catch-up still governs every paycheck you receive through December 31, 2026. Workers who are 60, 61, 62 or 63 get a larger catch-up of $11,750, and the IRA limit holds flat. Employers and plan administrators now have roughly seven weeks to update their systems before the new numbers apply. We’ll be updating this article monthly.
Here is what matters most right now. If you are 50 or older, you can plan a higher 2027 payroll deduction today, and your employer will need to update its plan limits before January. Higher earners face a separate hurdle. Workers whose 2026 wages from their employer were above $155,000 will generally have to make their 2027 catch-up contributions as Roth contributions, which means after-tax money going in. This is the second year that rule has been in play, and the wage line moved up by $5,000. Savers who are 60 to 63 should also look at the larger catch-up, since that group has the most room to add money. Those under 50 see only the base-limit increase and no catch-up. Everyone with an IRA keeps the same limit as this year. The sections below cover each limit, the dates, a payroll schedule for reaching the maximum, and a calculator that shows your own numbers.
401k Catch-Up Limit 2027 Key Highlights and Dates
| Item | 2027 | 2026 | Change |
|---|---|---|---|
| Employee deferral limit (401k, 403b, most 457, TSP) | $25,500 | $24,500 | Up $1,000 |
| Catch-up, age 50 and older | $8,500 | $8,000 | Up $500 |
| Higher catch-up, ages 60 to 63 | $11,750 | $11,250 | Up $500 |
| Total possible deferral, age 50 to 59 or 64 and older | $34,000 | $32,500 | Up $1,500 |
| Total possible deferral, ages 60 to 63 | $37,250 | $35,750 | Up $1,500 |
| Roth catch-up wage threshold | $155,000 | $150,000 | Up $5,000 |
| IRA limit | $7,500 | $7,500 | No change |
| IRA catch-up, age 50 and older | $1,100 | $1,100 | No change |
| Annual additions limit, defined contribution plans | $75,000 | $72,000 | Up $3,000 |
Important Dates for the New Catch-Up Limit
| Date | What happens |
|---|---|
| Thursday, November 12, 2026 | IRS announces 2027 limits in Notice 2026-66 |
| December 31, 2026 | Last day the $8,000 catch-up applies |
| January 1, 2027 | New $8,500 catch-up limit takes effect |
| December 31, 2027 | Your age on this date decides whether you are in the age 50, age 60 to 63 or age 64 and older group |
| 2026 W-2 wages | Used to test the $155,000 Roth catch-up threshold for 2027 |
What Is the 401k Catch-Up Contribution Limit for 2027?
A catch-up contribution is extra money that workers 50 and older can add to a workplace retirement plan on top of the regular employee limit. For 2027, the regular limit is $25,500 and the standard catch-up is $8,500. Add them and you reach $34,000 for the year.
Catch-up amounts have been moving up in steps. The 2025 limit was $7,500, the 2026 limit is $8,000, and the 2027 limit is $8,500. That is a $1,000 rise over two years, or about 13 percent. The $500 bump from 2026 to 2027 is about 6 percent.
The same limits apply across several plan types. The IRS notice lists the $25,500 deferral limit as covering 401k, 403b and most 457 plans, and it also includes the Thrift Savings Plan. Federal employees on the TSP can therefore use the same numbers.
Super Catch-Up for Ages 60 to 63: The $11,750 Limit
A separate rule gives people in their early 60s a bigger catch-up. Under SECURE 2.0, workers who are 60, 61, 62 or 63 can contribute up to $11,750 as a catch-up in 2027, up from $11,250. The age that counts is the age you reach by the end of the calendar year.
This higher amount replaces the standard catch-up. It does not stack on top of it. A 62-year-old therefore has a catch-up cap of $11,750, not $8,500 plus $11,750. With the $25,500 base limit, the most a worker in that age band can defer in 2027 is $37,250.
The advantage ends at 64. A worker who turns 64 in 2027 goes back to the standard $8,500 catch-up, so the best planning window is the four years from 60 to 63.
Roth Catch-Up Rule: Who Must Use After-Tax Dollars in 2027
SECURE 2.0 added a rule for higher earners. If your prior-year wages from the employer that sponsors your plan were above a set amount, your catch-up contributions must be made as Roth contributions. The threshold is $145,000 in the law, adjusted in $5,000 steps. The IRS set it at $150,000 for 2026 and sets it at $155,000 for 2027.
A few details are worth knowing, according to CPA Journal and the IRS notice:
- The test looks at Social Security wages shown in Box 3 of your W-2 from that employer, not your adjusted gross income.
- For 2027 catch-up contributions, the test uses your 2026 wages.
- A new hire with no prior-year wages from the employer is not caught by the rule.
- Self-employment income alone does not trigger it.
- Workers who are subject to the rule and whose plan has no Roth option cannot make catch-up contributions to that plan.
The practical effect is simple. A high earner who wanted a tax deduction on catch-up money will not get one in the affected plan. The money goes in after tax, and qualified withdrawals can come out tax free later. Final regulations were published in September 2025 and are generally effective for taxable years after December 31, 2026, with a good-faith standard applying in the meantime.
How to Increase Your Catch-Up Contributions Before January
You do not file anything with the IRS to use a higher catch-up limit. The process runs through your employer’s plan. Here is a straightforward path.
- Confirm your age tier. Use your age on December 31, 2027 to see whether you are in the 50 and older group, the 60 to 63 group or under 50.
- Check your plan. Ask your plan administrator whether the plan allows catch-up contributions and whether it will adopt the new $8,500 and $11,750 amounts.
- Check the Roth rule. If your 2026 W-2 Box 3 wages from the employer are above $155,000, ask whether the plan offers Roth contributions.
- Change your deferral election. Most employers use an online benefits portal or payroll system. Federal employees can use the Thrift Savings Plan website for TSP contributions.
- Pick your payroll amount. The schedule below shows how much per paycheck reaches the maximum.
- Review your first January paycheck. Make sure the deduction matches what you chose.
Payroll Schedule: How Much Per Paycheck Reaches the 2027 Maximum
Reaching the maximum is easier when you spread it over the year. The table below divides each limit evenly across common pay schedules. Your plan may have its own rules about how contributions are stopped at the limit, so check your pay stubs during the year.
| Pay schedule | Catch-up only ($8,500) | Full limit, age 50 and older ($34,000) | Full limit, ages 60 to 63 ($37,250) |
|---|---|---|---|
| Weekly (52) | $163.46 | $653.85 | $716.35 |
| Every two weeks (26) | $326.92 | $1,307.69 | $1,432.69 |
| Twice a month (24) | $354.17 | $1,416.67 | $1,552.08 |
| Monthly (12) | $708.33 | $2,833.33 | $3,104.17 |
If your employer sends contributions each pay period, an even schedule can leave you short if you start late. Workers who begin mid-year need a higher per-paycheck amount to reach the same total.
When Do the New Catch-Up Limits Start and How Fast Will Plans Update?
The new amounts apply to calendar year 2027, so they start on January 1, 2027. Between now and then, the 2026 limits still control. That means a worker who wants to put in the full $8,000 catch-up this year has until the last payroll of December to do it.
Plan administrators usually update their systems in the weeks after the IRS publishes new limits. The notice was released on November 12, so most employers have about seven weeks to prepare. Some plans cap contributions below the IRS limit because of testing rules or plan design, and the IRS limit is a ceiling, not a promise. If you want to know whether your plan will accept the full $8,500, ask the administrator directly.
There is one change that reaches beyond the catch-up itself. According to the notice, for taxable years beginning after December 31, 2026, a new Saver’s Match replaces the Saver’s Credit for contributions to qualifying retirement plans and IRAs, while the credit remains for ABLE accounts. The notice excerpt reviewed for this article does not explain how the match works, so check IRS guidance before you count on it.
2027 IRA Limits and Income Phase-Outs
The IRA limit does not move. You can contribute $7,500 to a traditional and Roth IRA combined in 2027, plus a $1,100 catch-up if you are 50 or older, for a total of $8,600. Both numbers match 2026.
What does move are the income ranges that decide whether you can deduct a traditional IRA contribution or make a full Roth contribution.
| Filing status | Traditional IRA deduction phase-out (covered by a workplace plan) | Roth IRA phase-out |
|---|---|---|
| Single or head of household | $83,000 to $93,000 | $158,000 to $173,000 |
| Married filing jointly | $133,000 to $153,000 | $250,000 to $260,000 |
| Not covered, spouse covered | $250,000 to $260,000 | Not applicable |
| Married filing separately | $0 to $10,000 | $0 to $10,000 |
The 2026 ranges were $81,000 to $91,000 for single filers and $129,000 to $149,000 for joint filers on the traditional deduction, and $153,000 to $168,000 and $242,000 to $252,000 on the Roth side. The married filing separately range was not adjusted.
SIMPLE Plan Catch-Up Limits for 2027
Workers in SIMPLE plans see a smaller change. The standard SIMPLE salary reduction limit rises to $17,500 from $17,000, and the limit for certain eligible employers rises to $19,100 from $18,100. The age 50 catch-up for SIMPLE plans stays at $4,000, and the ages 60 to 63 amount stays at $5,250. The Roth catch-up wage test does not apply to SIMPLE IRAs, according to the summary reviewed, though SIMPLE 401k plans are treated differently.
401k Catch-Up Contribution Calculator for 2027
Use the calculator below to see your 2027 limit, the per-paycheck amount to reach it, and whether the Roth rule may apply to you. Enter your age on December 31, 2027, your 2026 wages, and your pay schedule, then press Calculate.
401k Catch-Up Contribution Calculator for 2027
Based on IRS Notice 2026-66. Find your 2027 limit, the per-paycheck amount needed to reach it, and whether the Roth catch-up rule may apply.
Estimates only, not tax or legal advice. Limits are the 2027 amounts in IRS Notice 2026-66: $25,500 employee deferral, $8,500 catch-up at age 50 or older, $11,750 for ages 60 to 63, and a $155,000 Roth catch-up wage threshold based on 2026 wages. Your plan may set lower limits or may not offer a Roth option, so confirm with your plan administrator.
401k Catch-Up Limit History: How the Numbers Have Changed
Looking at the last three years shows how steady the climb has been. The IRS raises these limits in set steps when inflation data supports it, and the catch-up has moved in $500 increments in each of the last two adjustments.
| Year | Base deferral limit | Age 50 catch-up | Ages 60 to 63 catch-up |
|---|---|---|---|
| 2025 | $23,500 | $7,500 | $11,250 |
| 2026 | $24,500 | $8,000 | $11,250 |
| 2027 | $25,500 | $8,500 | $11,750 |
The ages 60 to 63 amount did not change between 2025 and 2026, which is why the 2027 increase of $500 is the first movement in that group in this stretch. For a worker who stays in the same age band, the base limit has risen $2,000 over two years and the catch-up has risen $1,000. Those are the IRS figures for each year as reported in its annual announcements and in the 2027 notice.
Traditional or Roth Catch-Up: What to Think About
Workers who are not caught by the high-earner rule can usually choose between pre-tax and Roth catch-up contributions, if their plan offers both. The choice comes down to when you want the tax benefit.
A pre-tax contribution lowers your taxable income now, and you pay tax when you withdraw the money in retirement. A Roth contribution gives you no deduction now, but qualified withdrawals later are tax free. People often compare their current tax bracket with the bracket they expect in retirement. If you expect to be in a lower bracket later, pre-tax money may look better. If you expect a similar or higher bracket, or you want tax-free income to manage future withdrawals, Roth money may look better.
Some savers split the difference and send part of the catch-up to each side. Others have no real choice because of the wage rule above. Plans also differ, since a plan is not required to offer a Roth option, and a worker who is subject to the rule and has no Roth option in the plan cannot make catch-up contributions there. In that case, an IRA may be the fallback. The IRA limit of $7,500 plus the $1,100 catch-up is smaller, but it is available outside the employer plan. A tax professional can help you compare options for your own situation.
What the 2027 Limits Mean for Federal Employees on the TSP
The IRS notice lists the Thrift Savings Plan alongside 401k plans for the $25,500 deferral limit, and the age 50 and older catch-up follows the same schedule. For a federal worker 50 or older, that points to the same $34,000 ceiling, or $37,250 for those aged 60 to 63, subject to how the TSP applies its own rules.
Federal employees should check two things. First, confirm in your TSP account how your contribution election is set, since it may be stated as a dollar amount or a percentage of pay. Second, if your Box 3 wages from your agency were above $155,000 in 2026, ask how the Roth catch-up rule applies to your account. Federal pay tables and agency rules are separate from the IRS limits, so your own payroll office is the best source for how deductions appear on your pay statements.
Who Benefits Most From the Higher Catch-Up Limit?
The raise is modest in dollars, but the effect depends on your situation. A saver in the 60 to 63 window gains the most room, since the combined limit reaches $37,250. Someone who has been maxing out contributions already will simply add $1,500 of total room next year, made up of $1,000 on the base limit and $500 on the catch-up.
Savers who start late have the most to gain from the habit. At $8,500 a year, ten years of catch-up contributions would add up to $85,000 before any investment growth, and the figure rises with each annual adjustment. Whether you can afford to use the full amount depends on your budget, your plan menu and your tax situation, and a licensed adviser or tax professional can help you weigh that. This article is general information, not tax or investment advice.
Official Resources for 401k Catch-Up Limits and Retirement Accounts
401k Catch-Up Contribution Limit FAQs
What is the 401k catch-up limit for 2027?
It is $8,500 for workers who are 50 or older, up from $8,000 in 2026. Workers who are 60 through 63 can contribute up to $11,750 as a catch-up instead.
When does the $8,500 catch-up limit start?
It starts January 1, 2027. The 2026 limit of $8,000 still applies to contributions made through December 31, 2026.
How much can I contribute to a 401k in 2027 if I am over 50?
The base limit is $25,500, and the catch-up is $8,500, so the total is $34,000. If you are 60 to 63, the total is $37,250.
Does the IRA catch-up limit change?
No. The IRA limit stays at $7,500 and the catch-up stays at $1,100, so the total is $8,600 for people 50 and older.
Do high earners have to make Roth catch-up contributions?
Generally yes, if your 2026 Box 3 wages from the plan sponsor were above $155,000. Those workers must make catch-up contributions as Roth contributions in 2027.
Does the catch-up limit apply to the Thrift Savings Plan?
The IRS notice lists the TSP with the $25,500 deferral limit. Check the TSP website for how it applies the catch-up limit to your account.
Do I need to file anything with the IRS to make catch-up contributions?
No. You change your contribution election through your employer’s plan, and the plan reports the contributions.
Will my employer allow the full amount?
Not always. The IRS figures are ceilings, and some plans set lower limits. Ask your plan administrator.
What is the catch-up contribution for age 50 in 2027?
It is $8,500 for 401k, 403b, most 457 and TSP accounts. In a traditional or Roth IRA, the age 50 catch-up is $1,100.
What is the super catch-up for ages 60 to 63?
It is $11,750 in 2027, up from $11,250. It replaces the regular catch-up and does not add to it.
What is the maximum 401k contribution for a 55-year-old in 2027?
It is $34,000, made up of the $25,500 base limit and the $8,500 catch-up.
What is the maximum 401k contribution for a 62-year-old in 2027?
It is $37,250, made up of the $25,500 base limit and the $11,750 catch-up for ages 60 to 63.
Is the 401k catch-up limit going up in 2027?
Yes. It goes from $8,000 to $8,500, according to IRS Notice 2026-66.
Is the IRA limit going up in 2027?
No. It stays at $7,500, with a $1,100 catch-up for people 50 and older.
Who has to make Roth catch-up contributions?
Workers whose prior-year W-2 Box 3 wages from the plan sponsor exceed the threshold. For 2027, the threshold is $155,000 based on 2026 wages.
Can I make catch-up contributions if I turn 50 late in the year?
Yes. Eligibility is based on turning 50 by the end of the calendar year, so you qualify for the whole year.
Conclusion
The 401k catch-up contribution limit is moving to $8,500 on January 1, 2027, and the full picture is a little more than one number. The base limit rises to $25,500, the ages 60 to 63 catch-up reaches $11,750, and the Roth wage threshold goes to $155,000. IRA limits stay flat, which makes the workplace plan the main place to add room.
For now, nothing changes in this year’s paychecks. The best next steps are to confirm your age tier, ask your plan about the new limits and the Roth option, and set a payroll amount that fits your budget. We’ll be updating this article monthly as plans and the IRS publish more guidance.
