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Americans get $1,000 retirement savings boost with new IRS rules
New York Post • • business
Key Points:
- Starting in 2027, Americans can contribute up to $25,500 to their 401(k) accounts, a $1,000 increase from the 2026 limit of $24,500, allowing for greater retirement savings through employer-sponsored plans.
- Workers aged 50 and older can make larger catch-up contributions, with limits rising to $34,000 for those 50+ and $37,250 for those aged 60 to 63, both increases of $1,500.
- IRA contribution limits remain unchanged, with a cap of $7,500 for those under 50 and $8,600 for those 50 and older.
- The IRS also updated tax brackets for 2027 to reflect inflation, raising income thresholds by about 3.22% to 3.25%, and increased the standard deduction to $16,600 for individuals and $33,200 for married couples filing jointly.
- The child tax credit will increase by $100 to $2,300, and taxpayers should review their accounts and tax plans ahead of the April filing deadline to account for these changes.
