The 401(k) contribution limit for 2027 is $25,500, up $1,000 from $24,500 in 2026, the IRS announced on November 12, 2026. The IRA limit stays at $7,500. Workers 50 and older can add $8,500 in catch-up contributions, and those aged 60 to 63 can add $11,750.
Workers who max out their retirement plans will be able to put away more money next year. On November 12, 2026, the Internal Revenue Service said the 401(k) contribution limit for 2027 will be $25,500, a $1,000 increase over the $24,500 cap that applies this year. The same higher limit covers 403(b) plans, most 457 plans and the federal Thrift Savings Plan. The numbers come from Notice 2026-66, which updates retirement plan amounts for cost of living changes. Savers aged 50 and older get a larger catch-up allowance too, so a worker in that group can now defer as much as $34,000 in a single year. We will be updating this article monthly as plan sponsors, payroll providers and the IRS add guidance.
There is one clear disappointment for people who save outside the workplace. The IRA limit does not move. It remains $7,500, the same as this year, and the catch-up for savers 50 and older stays at $1,100. That means the gap between what you can put in a workplace plan and what you can put in an IRA keeps widening, from $17,000 this year to $18,000 in 2027. The income limits that decide whether you can contribute to a Roth IRA or deduct a traditional IRA contribution do rise, however, which helps some higher earners keep eligibility.
401(k) Contribution Limit 2027 Key Highlights and Dates
| Item | Detail |
|---|---|
| Announcement | IRS news release IR-2026-136, November 12, 2026 |
| Guidance document | IRS Notice 2026-66 |
| 401(k), 403(b), most 457 and TSP limit for 2027 | $25,500 (up from $24,500) |
| Catch-up, age 50 and older | $8,500 (up from $8,000) |
| Catch-up, ages 60 to 63 | $11,750 (up from $11,250) |
| IRA limit for 2027 | $7,500 (unchanged) |
| IRA catch-up, age 50 and older | $1,100 (unchanged) |
| Roth catch-up wage threshold | $155,000, based on 2026 wages (up from $150,000) |
| Effective for | Plan years and tax years beginning in 2027 |
2027 vs 2026 Retirement Contribution Limits
| Limit | 2027 | 2026 | Change |
|---|---|---|---|
| 401(k), 403(b), most 457, TSP employee deferral | $25,500 | $24,500 | Plus $1,000 |
| Catch-up, age 50 and older | $8,500 | $8,000 | Plus $500 |
| Catch-up, ages 60 to 63 | $11,750 | $11,250 | Plus $500 |
| Total for age 50 and older | $34,000 | $32,500 | Plus $1,500 |
| Total for ages 60 to 63 | $37,250 | $35,750 | Plus $1,500 |
| Traditional and Roth IRA | $7,500 | $7,500 | No change |
| IRA catch-up, age 50 and older | $1,100 | $1,100 | No change |
| SIMPLE IRA | $17,500 | $17,000 | Plus $500 |
| SIMPLE IRA, certain applicable plans | $19,100 | $18,100 | Plus $1,000 |
| SIMPLE catch-up, age 50 and older | $4,000 | $4,000 | No change |
| SIMPLE catch-up, ages 60 to 63 | $5,250 | $5,250 | No change |
The 2027 totals combine the base limit with the catch-up. The age 50 total is $25,500 plus $8,500, and the age 60 to 63 total is $25,500 plus $11,750.
How Much Can You Contribute to a 401(k) in 2027?
The answer depends on your age on December 31, 2027. Under age 50, you can defer up to $25,500 of your pay. At 50 or older, the cap is $34,000. If you turn 60, 61, 62 or 63 during 2027, the cap rises to $37,250 because of the higher catch-up created by the SECURE 2.0 Act. Once you reach 64, the standard age 50 catch-up applies again.
Those numbers are what you can defer from your own paycheck. Employer matches and profit sharing do not count against your personal limit, though total additions from you and your employer are capped under Section 415(c). That cap rises to $75,000 for 2027 from $72,000, according to Notice 2026-66, and the catch-up is not counted toward it.
Here is what the new maximums look like per paycheck, using simple division. These are not tax advice, just arithmetic you can adapt to your own pay schedule.
| Age group | Annual maximum | Monthly | Every two weeks (26 paychecks) |
|---|---|---|---|
| Under 50 | $25,500 | $2,125 | About $981 |
| 50 to 59 or 64 and older | $34,000 | About $2,833 | About $1,308 |
| 60 to 63 | $37,250 | About $3,104 | About $1,433 |
401(k) Catch-Up Contributions 2027: Ages 50 and 60 to 63
The ordinary catch-up for workers 50 and older increases by $500 to $8,500. The enhanced catch-up for people aged 60 through 63 increases by the same amount to $11,750. This window was added by SECURE 2.0, and it applies to 401(k), 403(b), governmental 457 and TSP accounts. SIMPLE plans have their own catch-up rules and their numbers are unchanged for 2027.
A workplace plan can choose whether to offer these catch-up features, so check your plan documents. If you are close to retirement and have room in your budget, the 60 to 63 window is the most generous stretch in the system. The $11,750 catch-up is $3,250 more than the ordinary age 50 catch-up of $8,500, which lets you defer $37,250 in a single year.
Roth Catch-Up Rule: The $155,000 Wage Threshold
A second change deserves attention if you earn a high salary. Under SECURE 2.0, higher earners must make their catch-up contributions as Roth contributions, meaning after tax money that grows tax free. Notice 2026-66 sets the wage threshold at $155,000 for 2027, up from $150,000. According to a summary by tax professional Louis Velazquez, the test is based on wages from the employer in 2026, not 2027. In other words, what you earn this year determines how your catch-up is treated next year.
If your 2026 wages from the employer that sponsors the plan were above the threshold, you should expect your 2027 catch-up dollars to go in as Roth. That is not a penalty, and some savers like the tax free growth, but it does mean no upfront deduction on those dollars. Ask your plan administrator how the plan will apply the rule, because it depends on the plan’s design and payroll setup.
IRA Contribution Limit 2027 Stays at $7,500
The IRA limit for 2027 is $7,500, unchanged from 2026. People 50 and older can add $1,100, for a total of $8,600. The limit applies to the combined total across all your traditional and Roth IRAs, not to each account separately.
The IRA ceiling is adjusted in fixed dollar steps, which is why it can stay flat even when other limits move. A cost of living change has to be large enough to reach the next step before the number changes, and this year it was not. For a saver who already uses a 401(k) and an IRA, the practical effect is modest, since the IRA stays where it was and the 401(k) goes up by $1,000.
Roth IRA Income Limits 2027
Your ability to contribute directly to a Roth IRA depends on modified adjusted gross income. The ranges rise for 2027, which gives people near the old edges more room.
| Filing status | 2027 phase-out range | 2026 phase-out range |
|---|---|---|
| Single or head of household | $158,000 to $173,000 | $153,000 to $168,000 |
| Married filing jointly | $250,000 to $260,000 | $242,000 to $252,000 |
| Married filing separately | $0 to $10,000 | $0 to $10,000 |
Inside a range, the amount you can contribute shrinks gradually. At or above the top number, you cannot contribute directly. A single filer who earned $165,500 in 2027 would be about halfway through the range and could contribute roughly half the limit. The married filing separately range is not adjusted for inflation, so it stays the same.
Traditional IRA Deduction Limits 2027
You can contribute to a traditional IRA at any income, but deducting it depends on income and whether you or your spouse is covered by a workplace plan.
| Situation | 2027 phase-out range | 2026 phase-out range |
|---|---|---|
| Single, covered by a workplace plan | $83,000 to $93,000 | $81,000 to $91,000 |
| Married filing jointly, contributing spouse covered | $133,000 to $153,000 | $129,000 to $149,000 |
| Contributor not covered, spouse covered | $250,000 to $260,000 | $242,000 to $252,000 |
| Married filing separately, covered | $0 to $10,000 | $0 to $10,000 |
If neither you nor your spouse is covered by a workplace plan, your traditional IRA contribution is generally deductible no matter how much you earn.
Other 2027 Retirement Plan Limits Employers and Business Owners Should Know
Notice 2026-66 also raises several figures that matter to plan sponsors and small business owners.
| Limit | 2027 | 2026 |
|---|---|---|
| Section 415(c) defined contribution limit | $75,000 | $72,000 |
| Compensation limit under Section 401(a)(17) | $375,000 | $360,000 |
| Highly compensated employee threshold | $170,000 | $160,000 |
| Key employee threshold | $245,000 | $235,000 |
| SEP IRA maximum | $75,000 | $72,000 |
Higher compensation limits change how much pay can be counted when a plan computes benefits and contributions. A higher highly compensated employee threshold means fewer workers fall into that group for nondiscrimination testing, which can ease testing for some employers. The SEP IRA figure is reported by secondary summaries of the notice and mirrors the Section 415(c) number, so confirm it with the IRS notice or your plan provider.
Saver’s Credit Income Limits and What Is Changing in 2027
The IRS also published new income limits for the Saver’s Credit, which for contributions made after December 31, 2026 are tied to ABLE accounts under the notice.
| Filing status | 2027 limit | 2026 limit |
|---|---|---|
| Married filing jointly | $83,000 | $80,500 |
| Head of household | $62,250 | $60,375 |
| Single or married filing separately | $41,500 | $40,250 |
Tax summaries of the notice also say the Saver’s Credit is being replaced by a new Saver’s Match for eligible retirement contributions beginning in 2027. The details of that program have not been fully explained in the sources reviewed for this article, so low and moderate income savers should check IRS guidance before counting on either benefit.
Who Gains the Most From the 2027 Limit Increase?
The raise is helpful but not equal for everyone. A worker under 50 can add $1,000 more, about 4.1 percent above this year. Someone 50 or older gains $1,500 in total capacity, and the same applies in the 60 to 63 window. Savers who already contribute less than the maximum will not feel any change unless they decide to increase their rate.
The people who benefit most are those who already hit the limit early in the year. A high earner who maxes out in October, for example, will have $1,000 more room next year. By contrast, workers who earn too little to reach the limit may gain more from checking whether they are getting the full employer match.
For those with both plans, the combined ceiling is worth stating plainly. Under age 50, a saver can put $25,500 into a 401(k) plus $7,500 into an IRA, for $33,000. At 50 to 59, the total is $34,000 plus $8,600, or $42,600. In the 60 to 63 window, it is $37,250 plus $8,600, or $45,850. Roth IRA eligibility still depends on income, so not everyone can use the full IRA portion.
401(k) Contribution Limit 2027 Calculator
2027 401(k) and IRA Limit Calculator
Based on IRS Notice 2026-66. Enter your details to see your maximum 2027 workplace plan deferral, your IRA room and a per paycheck amount. Estimates only. Not tax advice.
The free calculator that comes with this article takes your age, filing status, income and pay schedule. It then shows your maximum 2027 deferral, the amount to set aside per paycheck, your Roth IRA room and whether your traditional IRA contribution is likely deductible. If you add your 2026 wages, it also flags whether your catch-up may have to be Roth. The HTML code is provided in a separate file so you can paste it into your page. The results are estimates, so confirm details with your plan administrator or a tax professional.
How to Contribute More in 2027?
Raising your contribution is usually a short process. Follow these steps:
- Log in to your employer’s retirement plan website or ask your human resources team for the enrollment form.
- Check whether your plan offers pre tax, Roth or both, and decide which fits your tax situation.
- Set your contribution as a percentage or a dollar amount per paycheck, using the arithmetic above if you want to hit the new maximum.
- If you are 50 or older, make sure your plan allows catch-up contributions and confirm how they are tracked.
- For an IRA, open an account with a bank, brokerage or robo advisor and link a bank account for deposits.
- Save a confirmation of any change, and review your pay stub after the first paycheck to make sure the new amount is correct.
If you changed jobs during the year, remember that the 401(k) limit applies to you across all employers, not to each plan. You are responsible for tracking your total.
Processing Time: When Contribution Changes Take Effect
Payroll changes are not instant. Many employers apply a new contribution rate in the next payroll cycle after you submit it, and some need one or two cycles, so make your 2027 election before the first paycheck of January if you want the higher rate from the start. IRA deposits made by electronic transfer typically post within a few business days, though your provider may take longer to invest the money. If you roll money from an old plan into an IRA, allow extra time for the paperwork and make sure the check or transfer is clearly labeled as a rollover, not a new contribution.
Contribution Deadlines and Payment Schedule
For a 401(k), contributions come from your paycheck, so your deadline is effectively December 31, 2027, the last payroll date of the year. You cannot make employee deferrals for 2027 after that date, although employer contributions may be deposited later under plan rules. For an IRA, you can contribute for 2027 until the federal tax filing deadline in April 2028, not counting extensions. Tell your provider which tax year a deposit is for, since deposits made between January and April can be assigned to either year.
If you want to spread contributions evenly, divide the limit by the number of pay periods. The table earlier in this article shows the monthly and every two week amounts. Front loading a 401(k) can reduce the effect of an employer match that is calculated per paycheck, so check your plan’s match formula first.
Official Websites and Resources
| Resource | What it is for | Link |
|---|---|---|
| IRS Notice 2026-66 | Official 2027 retirement plan limits | https://www.irs.gov/pub/irs-drop/n-26-66.pdf |
| IRS news release IR-2026-136 | Announcement of the 2027 limits | https://www.irs.gov/newsroom/401k-limit-increases-to-25500-for-2027-ira-limit-remains-7500 |
| IRS retirement plans page | Plan rules for employers and participants | https://www.irs.gov/retirement-plans |
| IRS IRA page | Traditional and Roth IRA basics | https://www.irs.gov/retirement-plans/individual-retirement-arrangements-iras |
| IRS online account | Check your tax records and payments | https://www.irs.gov/payments/your-online-account |
| Thrift Savings Plan | Federal employee TSP login and contribution changes | https://www.tsp.gov |
| Your employer plan portal | Change your payroll contribution | Ask your human resources department for the link |
FAQs About the 401(k) Contribution Limit 2027
What is the 401(k) contribution limit for 2027?
It is $25,500 for employee deferrals, up $1,000 from $24,500 in 2026. The limit also applies to 403(b), most 457 and Thrift Savings Plan accounts.
What is the 401(k) catch-up limit for 2027?
It is $8,500 for workers 50 and older, bringing the total to $34,000. Workers aged 60 to 63 can add $11,750, for a total of $37,250.
What is the IRA contribution limit for 2027?
It is $7,500, unchanged from 2026. People 50 and older can add $1,100, for a total of $8,600.
When did the IRS announce the 2027 limits?
The IRS announced them on November 12, 2026, in news release IR-2026-136, with details in Notice 2026-66.
Why is the IRA limit not going up?
The IRA limit is adjusted in set steps, so it only changes when the cost of living adjustment is large enough to reach the next step. This year it did not.
Can I contribute to both a 401(k) and an IRA in 2027?
Yes. The limits are separate. Roth IRA eligibility depends on income, and traditional IRA deductions can be reduced if you have a workplace plan and higher income.
Does my employer match count toward the 401(k) limit?
No. The $25,500 applies to your own deferrals. The combined total of employee and employer contributions is limited by Section 415(c), which is $75,000 for 2027.
Do I have to make Roth catch-up contributions in 2027?
Only if your wages from your plan sponsor in 2026 were above $155,000. If so, your catch-up contributions generally must be made as Roth.
How much can I put in my 401(k) at age 50 in 2027?
You can put in up to $34,000, which is the $25,500 limit plus the $8,500 catch-up.
How much can a 62 year old contribute to a 401(k) in 2027?
If your plan allows the enhanced catch-up, you can contribute up to $37,250, which is $25,500 plus $11,750.
What are the Roth IRA income limits for 2027?
For single filers, the phase-out runs from $158,000 to $173,000. For married couples filing jointly, it runs from $250,000 to $260,000.
Is the 401(k) limit per person or per plan?
It is per person across all plans you participate in with the same type of employee deferrals, so if you have two jobs you must watch the combined total.
Can I contribute to an IRA after the end of the year?
Yes, you can make an IRA contribution for 2027 until the tax filing deadline in April 2028, not counting extensions.
What is the SIMPLE IRA limit for 2027?
It is $17,500, with a higher $19,100 limit for certain plans. Catch-up amounts did not change.
What is the highly compensated employee threshold for 2027?
It is $170,000, up from $160,000.
Conclusion
The headline from the IRS is simple. The 401(k) contribution limit for 2027 climbs to $25,500, catch-up allowances rise by $500, and the IRA limit stays put at $7,500. Behind those numbers are other changes that matter just as much for some savers, including higher Roth and deduction income ranges, a $155,000 Roth catch-up wage threshold and larger limits for employers and small business owners.
The practical step is to review your payroll election before January, decide whether you want to use the full higher limit and check how your plan handles catch-up and Roth rules. Use the official links in this article for the latest guidance, and check back, because we will be updating this article monthly as new details appear.
