Workers will be able to put $25,500 into a 401(k) in 2027, $1,000 more than this year, the IRS announced Thursday, Nov. 12. The same limit covers 403(b) plans, most 457 plans and the federal Thrift Savings Plan.

IRAs stay where they are, at $7,500.

The 2027 limits at a glance

Limit20262027
401(k), 403(b), 457 and TSP contributions$24,500$25,500
Catch-up at age 50 and older$8,000$8,500
Catch-up at ages 60 to 63$11,250$11,750
IRA contributions$7,500$7,500
IRA catch-up at 50 and older$1,100$1,100
SIMPLE IRA contributions$17,000$17,500
Total employee and employer additions to a 401(k)$72,000$75,000

Someone paid every two weeks would need about $981 taken from each of 26 paychecks to reach $25,500, an Edit USA calculation. The higher cap applies to contributions made in 2027.

Savers 50 and older

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Image: Edit USA

A worker who is 50 or older can contribute up to $34,000 in 2027, the regular limit plus the $8,500 catch-up, and workers who turn 60, 61, 62 or 63 during the year get a larger catch-up of $11,750. That brings their total to $37,250.

Higher earners face a rule on how that extra money goes in. Under the IRS notice with the full list of adjustments, workers whose 2026 wages from the employer exceed $155,000, up from $150,000, must make their 2027 catch-up contributions as Roth contributions. Those come out of after-tax pay.

IRA deduction and Roth income ranges

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Image: Edit USA

The contribution cap is flat, but the income ranges that decide who can deduct a traditional IRA contribution or put money into a Roth IRA all rose.

  • A single filer covered by a workplace plan can take a full IRA deduction with income up to $83,000. It phases out by $93,000.
  • For a married couple filing jointly where the contributing spouse has a workplace plan, the phase-out runs from $133,000 to $153,000. If only the other spouse is covered, it runs from $250,000 to $260,000.
  • Roth IRA eligibility phases out between $158,000 and $173,000 for single filers and heads of household, and between $250,000 and $260,000 for married couples filing jointly.

The income limits for the Saver's Credit, aimed at low- and moderate-income workers, also rose, to $83,000 for married couples filing jointly, $62,250 for heads of household and $41,500 for single filers.