IRS raises 401(k) contribution limit for 2027 to $25,500
The IRS announced new limits in a notice issued on Thursday. Workers can now put away an extra $1,000 each year.
The IRS increased the 2027 401(k) deferral limit to $25,500 and raised catch-up limits to $8,500, or $11,750 for ages 60 to 63, according to HousingWire. The annual contribution limit went up $1,000 from the 2026 limit of $24,500, the agency announced in Notice 2026-66.
The higher limit also applies to employees participating in 403(b) plans, governmental 457 plans and the federal government's Thrift Savings Plan. The catch-up contribution limit for employees ages 50 and older increased from $8,000 in 2026. Employees ages 60 through 63 are eligible for a higher catch-up contribution limit under the SECURE 2.0 Act of 2022.
The annual contribution limit for individual retirement accounts remains unchanged at $7,500. The IRS also increased several income thresholds used to determine eligibility for tax deductions and retirement account contributions.
About IRS
Revenue service of the United States federal government
- Founded
- 1862
- Based in
- Internal Revenue Service Building
- Owned by
- United States Department of the Treasury
From Wikipedia. Figures can be a year or two old.
Figures as reported by HousingWire.
