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IRS announces new 401(k) limits in 2027 for savers who hit the max
Detroit Free Press • • business
Key Points:
- The IRS has increased the baseline 401(k) contribution limit to $25,500 for 2027, up from $24,500 in 2026, with similar increases applying to 403(b), governmental 457 plans, and the federal Thrift Savings Plan.
- Catch-up contributions for employees aged 50 and over rise to $8,500 in 2027, up from $8,000 in 2026, allowing total contributions up to $34,000 for this group.
- Employees aged 60 to 63 benefit from a higher catch-up limit of $11,750 in 2027 due to SECURE 2.0, enabling potential contributions up to $37,250.
- High earners (over $155,000 in 2026) must make catch-up contributions to a Roth 401(k) with after-tax dollars, and those without Roth options in their plans cannot make catch-up contributions.
- IRA contribution limits remain unchanged for 2027 at $7,500, with the catch-up limit for those 50 and over staying at $1,100; income phase-out ranges for Roth IRA contributions have been modestly increased for singles and married couples filing jointly.
