Workers can contribute up to $25,500 to a 401(k) in 2027, according to The Globe and Mail. This is an increase of $1,000 from the 2026 cap of $24,500, according to an Internal Revenue Service announcement on November 12, 2026.
The updated limits apply to elective deferrals for 401(k)s, 403(b) plans, most 457 plans, and the federal Thrift Savings Plan.
“Along with the Working Families Tax Cuts, this increase in the pension limitations will help American families keep more of their hard-earned income,” said Frank Bisignano.
Savers age 50 and older can contribute an extra $8,500 in catch-up contributions for 2027. This is up from $8,000 in 2026, raising their total annual limit to $34,000 in qualifying defined contribution plans, plansponsor reported.
Workers aged 60 through 63 can buy a higher catch-up contribution limit of $11,750 under provisions enacted through the SECURE 2.0 Act.
This allows workers in that specific age bracket to save up to $37,250 annually in a workplace retirement plan.
The maximum account balance attributable to participant contributions in pension-linked emergency savings accounts increases to $2,700 from $2,600.
The annual contribution limit for individual retirement accounts remains at $7,500 for 2027. The catch-up contribution for individuals aged 50 and older stays at $1,100, according to Notice 2026-66.
The income phase-out ranges for traditional IRA deductions and Roth IRA contributions move upward.
For single taxpayers covered by a workplace retirement plan, the traditional IRA phase-out range increases to between $83,000 and $93,000. It is up from between $81,000 and $91,000 in 2026.
For single filers and heads of household, the Roth IRA income phase-out range increases to between $158,000 and $173,000. This is up from between $153,000 and $168,000.
For married couples filing jointly, the Roth phase-out range moves to between $250,000 and $260,000. It compared with between $242,000 and $252,000 in 2026.
The phase-out range for a married individual filing a separate return who contributes to a Roth IRA receives no annual cost-of-living adjustment. It stays between $0 and $10,000.
Adjusted gross income limits for the saver’s credit for low- and moderate-income workers rise to $83,000 for married couples filing jointly, up from $80,500.
The limit rises to $62,250 for heads of household, up from $60,375. It reaches $41,500 for singles and separate filers, up from $40,250.
Participants in certain applicable SIMPLE retirement plans can contribute up to $19,100 in 2027. This is an increase from $18,100, while general SIMPLE contribution limits increase to $17,500 from $17,000.
The catch-up contribution limit for employees aged 50 and older in most SIMPLE plans remains $4,000.
“With the new adjustment in place now, the IRS is giving taxpayers and employers the information needed to make retirement planning decisions for the year ahead,” said Bisignano.
Earlier coverage: IRS Announces 2027 401(k) Contribution Limit Increase to $25,500
