Last updated: November 11, 2026. This article is for general information only and is not personal financial, tax or investment advice. The IRS had not published the official 2027 retirement plan limits when this was written; every 2027 figure below is a projection from the sources named, and official numbers may differ. Confirm with IRS.gov, your plan administrator or a qualified professional before you change your contributions.
The 401(k) employee contribution limit is widely projected to rise to $25,500 in 2027, up $1,000 from the official 2026 limit of $24,500. Actuarial forecasts from Milliman and Marsh (formerly Mercer) match on that number, according to 401(k) Specialist, and independent calculations based on inflation data reach the same result.
Catch-up contributions for savers age 50 and older are also projected to increase. The one figure where projections disagree is the IRA limit. Below you will find the official 2026 numbers, the 2027 projections side by side and what to do before the IRS makes it official.
2027 401(k) Limits at a Glance (Projected)
| Limit | 2026 (official) | 2027 (projected) |
|---|---|---|
| Employee deferral: 401(k), 403(b), most 457 plans | $24,500 | $25,500 |
| Catch-up, age 50+ | $8,000 | $8,500 |
| Total employee contribution, age 50–59 or 64+ | $32,500 | $34,000 |
| “Super” catch-up, age 60–63 | $11,250 | $11,750 |
| Total employee contribution, age 60–63 | $35,750 | $37,250 |
| Total annual additions, employee + employer (415(c)) | $72,000 | $75,000 |
| Compensation limit (401(a)(17)) | $360,000 | $375,000 |
| Highly compensated employee threshold | $160,000 | $170,000 |
| Roth catch-up wage threshold (see below) | $150,000 | $155,000 |
| SIMPLE IRA / SIMPLE 401(k) deferral | $17,000 | $17,500 |
| Traditional/Roth IRA | $7,500 | $7,500 or $8,000 (projections differ) |
| IRA catch-up, age 50+ | $1,100 | $1,100 (one projection) |
2026 figures: IRS retirement plan limits and IRS Notice 2025-67 as summarized by the sources below. 2027 figures: projections reported by 401(k) Specialist (citing Milliman and Marsh), The White Coat Investor, Finbarrow and Forbes. Not official.
Why the 401(k) Limit Is Expected to Rise by $1,000
Retirement plan limits are indexed to inflation. The IRS compares the average Consumer Price Index (CPI-U) for the third quarter (July–September) with a base period, then rounds the result down to the nearest $500 for the deferral and catch-up limits. Because the September 2026 CPI data is already published, forecasters can calculate the likely result before the IRS announces it.
Milliman estimated the 2027 increase factor at about 3.5%. Finbarrow’s worked example shows the unrounded 2027 deferral limit landing around $25,546, which rounds down to $25,500. That is why the figure is described as “all but official,” although only the IRS notice makes it final.
The IRA question: $7,500 or $8,000?
The IRA limit uses a different base year and the same round-down rule, so a small difference in the calculation can decide whether it moves. The White Coat Investor and Forbes expect the IRA limit to stay at $7,500. Finbarrow’s formula-based calculation puts it at $8,000. If you plan to max out an IRA in 2027, wait for the IRS announcement before setting up automatic contributions at the higher amount.
Catch-Up Contributions in 2027
Age 50 and older
If you turn 50 or older by the end of 2027, you are projected to be able to add $8,500 on top of the regular limit, for a total of $34,000 in employee contributions.
Ages 60 to 63: the higher “super” catch-up
The SECURE 2.0 Act created a larger catch-up for workers who are 60, 61, 62 or 63 at the end of the year. For 2026 it is $11,250, and it replaces the standard catch-up rather than adding to it. For 2027 it is projected at $11,750, for a potential employee total of $37,250. Your plan must offer it, so check your plan documents.
High earners: catch-ups must be Roth
Starting in 2026, employees whose prior-year FICA (Social Security) wages from that employer exceeded $150,000 must make catch-up contributions on a Roth (after-tax) basis instead of pre-tax. The test uses your wages from that employer, not your household income. For 2027, the threshold is projected at $155,000, measured on 2026 wages.
What this means in practice: if you are above the line, your catch-up dollars will not lower your taxable income this year, but qualified Roth withdrawals later can be tax-free. Ask HR how your plan is handling the change, since some plans process it automatically. For a refresher on why your Social Security wages matter, see our explainer on the Social Security wage base for 2027.
Example: What the Increase Means for Your Paycheck
Suppose you are 45, paid twice a month (24 paychecks), and want to max out your 401(k):
- 2026: $24,500 ÷ 24 = about $1,021 per paycheck.
- 2027 (projected): $25,500 ÷ 24 = about $1,063 per paycheck, roughly $42 more each payday.
A 61-year-old using the projected super catch-up could contribute up to $37,250, or about $1,552 per paycheck. Your actual take-home change depends on your tax bracket; our guide to 2027 tax brackets can help you estimate the effect of pre-tax contributions.
When Will the IRS Announce the 2027 Limits?
The IRS usually announces the next year’s retirement plan limits in a notice in October or November. The 2026 limits were released on November 13, 2025, and the 2025 limits on November 1, 2024. As of November 11, 2026, the IRS newsroom showed its broader 2027 inflation adjustments for tax provisions, but not the 401(k) and IRA notice. We will update this article when the official figures are published.
Year-End Planning Checklist
- Finish 2026 first. 401(k) contributions for 2026 generally have to come out of paychecks by December 31, 2026. If you are behind, ask payroll about raising your percentage for the final pay periods.
- Use a percentage that hits the new limit without going over. If your plan does not “true up” the employer match, front-loading can cost you match dollars late in the year. Spreading contributions evenly is usually safer.
- Check your birth year. If you turn 50, or 60 through 63, in 2027, your catch-up options change.
- Confirm Roth catch-up handling if your 2026 wages from your employer will be above the projected $155,000 threshold.
- Coordinate with your HSA. If you are enrolled in a high-deductible plan, our HSA contribution limits 2027 guide covers the official $4,500/$9,000 limits.
- Do not drain your safety net. Raising retirement contributions makes sense once your emergency fund is in good shape.
Frequently Asked Questions
Is the 2027 401(k) limit official?
Not yet. $25,500 is a projection that multiple forecasters agree on. The IRS confirms the limit in an annual notice.
Does the 401(k) limit include my employer match?
No. The $25,500 projected limit covers your own deferrals. Employer contributions count toward the separate total limit, projected at $75,000 for 2027 (not counting catch-ups).
Can I contribute to both a 401(k) and an IRA?
Yes. The limits are separate. However, if you have a workplace plan, your ability to deduct traditional IRA contributions depends on your income, and Roth IRA eligibility has its own income limits.
What if I change jobs in 2027?
The employee deferral limit applies to you across all 401(k) and 403(b) plans combined, so track contributions at both employers to avoid going over.
What about required minimum distributions?
Contribution limits and withdrawal rules are different topics. Our guide to required minimum distributions explains when you must start taking money out.
Bottom Line
Expect the 401(k) limit to rise to $25,500 in 2027, with catch-up limits of $8,500 (age 50+) and $11,750 (ages 60–63). Use the projections to plan, but hold off on locking in an IRA amount until the IRS publishes the official notice. Next, review the 2027 tax brackets to see how much a higher pre-tax contribution could save you.
Sources
- IRS, “Retirement topics: 401(k) and profit-sharing plan contribution limits” (2026 figures).
- IRS Newsroom, accessed November 11, 2026.
- 401(k) Specialist, “2027 401(k) Contribution Limits All But Official: $25,500 Expected,” updated November 5, 2026.
- The White Coat Investor, “Retirement Plan Contribution Limits,” September 29, 2026.
- Finbarrow, “2027 401(k) and IRA contribution limits projection,” reviewed October 24, 2026.
- Forbes, “Your 401(k) Limit Is Likely Going Up in 2027. Here’s How to Plan for It Now,” October 6, 2026.
