IRS announces new 401(k) contribution limit for 2027

IRS announces new 401(k) contribution limit for 2027 Advertisement Updated: 9:33 AM EST Nov 13, 2026 Editorial Standards ⓘ Sydney Hartman Digital Curator IRS announces new 401(k) contribution limit for 2027 Updated: 9:33 AM EST Nov 13, 2026 Editorial Standards ⓘ Sydney Hartman Digital Curator WASHINGTON — The IRS on Thursday announced a new contribution limit for 401(k) plans for 2027, increasing it to account for inflation. Related video above: How the Nvidia selloff hits your 401(k) Advertisement The amount individuals can contribute to their 401(k) plans next year will increase to $25,500, up $1,000 from 2026, the IRS said in a news release Thursday. The annual contribution limit for those who participate in 403(b), governmental 457 plans and the federal government’s Thrift Savings Plan will also increase by $1,000 to $25,500 for 2027. IRA remains unchanged The limit on annual contributions to an Individual Retirement Account (IRA) will remain unchanged for 2027, staying at $7,500. Catch‑up contributions The limit for catch‑up contributions — that can be made by employees aged 50 and over who participate in most 401(k), 403(b), governmental 457 plans and the Thrift Savings Plan — will increase by $500 for 2027. The limit will increase to $8,500 next year, up from $8,000 for 2026. Therefore, those who are eligible could contribute up to $34,000 starting in 2027. Employees aged 60 to 63 who participate in these plans will have a higher catch-up contribution limit of $11,750 for 2027, which makes the maximum contribution $37,250 for next year. The IRA catch‑up contribution limit will remain unchanged at $1,100 for next year. IRS announces new federal income tax brackets for 2027 Make WLWT a preferred source on Google Add Preferred Source Share Infinite Scroll Enabled Top Picks Microsoft reports progress with restoring global outage; email access improving VIDEO: Frankie Muniz says he's recovering after crash at Daytona International Speedway Newly released Ring camera shows Brooklyn building collapsing WATCH: Master carver engraves crystals from last year's New Year's Eve ball