Americans will be able to put $25,500 into their 401(k) plans in 2027, up $1,000 from $24,500 in 2026, the IRS announced on November 12, 2026. The limit for IRAs stays at $7,500, but the income ranges for Roth IRA eligibility and traditional IRA deductions all move higher, giving more people room to save on a tax-advantaged basis.
The new figures come from IRS news release IR-2026-136 and Notice 2026-66, the agency’s annual cost-of-living update for retirement plans.
Workplace plan limits for 2027
The $25,500 employee contribution limit applies to 401(k), 403(b) and governmental 457 plans and the federal Thrift Savings Plan.
- Catch-up, age 50 and older: $8,500 (up from $8,000), so total possible contributions reach $34,000.
- “Super catch-up,” ages 60 to 63: $11,750 instead of $8,500, under the SECURE 2.0 Act.
- SIMPLE plans: $17,500 (up from $17,000); the higher applicable SIMPLE limit is $19,100. The SIMPLE catch-up stays at $4,000, or $5,250 for ages 60 to 63.
IRA and Roth IRA changes
The annual IRA contribution limit remains $7,500, and the catch-up for savers 50 and older stays at $1,100. What changes is who qualifies:
- Roth IRA, single or head of household: phase-out range rises to $158,000–$173,000 (from $153,000–$168,000).
- Roth IRA, married filing jointly: $250,000–$260,000 (from $242,000–$252,000).
- Traditional IRA deduction, single and covered by a workplace plan: $83,000–$93,000 (from $81,000–$91,000).
- Married filing jointly, contributing spouse covered: $133,000–$153,000 (from $129,000–$149,000).
- Not covered, but spouse is covered: $250,000–$260,000 (from $242,000–$252,000).
The ranges for married people filing separately stay at $0–$10,000 and are not adjusted for inflation.
Saver’s Credit income limits
The income ceiling for the Saver’s Credit, which rewards low- and moderate-income workers for retirement contributions, also rises: $83,000 for married couples filing jointly (from $80,500), $62,250 for heads of household (from $60,375) and $41,500 for single filers (from $40,250).
What it means for you
If you already max out your 401(k), raise your payroll contribution in January so you can use the extra $1,000 in 2027. Workers turning 60 to 63 next year should check whether their plan offers the larger $11,750 catch-up. Many people never come close to the limit, but even a 1% increase in your contribution rate can add up over decades. Higher Roth income limits may also let some households contribute directly to a Roth IRA for the first time.
Key details
- 401(k)/403(b)/457/TSP: $25,500
- Catch-up 50+: $8,500; ages 60–63: $11,750
- IRA: $7,500 (catch-up $1,100)
- Roth IRA phase-out: $158,000–$173,000 single; $250,000–$260,000 joint
- Source: IRS IR-2026-136, Notice 2026-66 (Nov. 12, 2026)
Read the official announcement on the IRS Newsroom. Related: Social Security Payment Schedule December 2026. This article is general information, not tax or investment advice.
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