IRS Lifts 2027 401(k) Limit to $25,500 as IRA Cap Holds at $7,500
Updated
Updated · Accounting Today · Nov 12
IRS Lifts 2027 401(k) Limit to $25,500 as IRA Cap Holds at $7,500
3 articles · Updated · Accounting Today · Nov 12
Summary
$25,500 is the new 2027 employee contribution cap for 401(k), 403(b), governmental 457 and Thrift Savings plans, up $1,000 from 2026 under the IRS's annual cost-of-living adjustments.
$34,000 is the new maximum for most savers age 50 and older, as the standard catch-up limit rises to $8,500; workers ages 60 to 63 can contribute up to $11,750 in catch-up amounts.
$7,500 remains the IRA contribution limit for 2027, with the age-50-plus IRA catch-up unchanged at $1,100 even as income phase-out ranges for traditional and Roth IRAs move higher.
$158,000 to $173,000 is the new Roth IRA phase-out range for single filers, while SIMPLE account limits rise to $17,500 and Saver's Credit income thresholds also increase, broadening eligibility across retirement plans.