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IRS raises the 2027 401(k) contribution limit by $1,000 to $25,500
Fox Business • • business
Key Points:
- The IRS has raised the 401(k) contribution limit for 2027 to $25,500, up $1,000 from the 2026 limit of $24,500, reflecting inflation adjustments.
- The catch-up contribution limit for workers aged 50 and over in 401(k), 403(b), governmental 457 plans, and the federal Thrift Savings Plan has increased by $500 to $8,500.
- Individuals aged 50 and over can contribute up to $34,000 annually to these retirement plans starting next year, with those aged 60 to 63 eligible to contribute $11,750 due to changes from the SECURE 2.0 Act of 2022.
- The IRA contribution limit remains unchanged at $7,500, with the catch-up contribution limit for those 50 and over staying at $1,100, also adjusted for cost-of-living under the SECURE Act of 2022.
- IRS CEO Frank J. Bisignano emphasized that these adjustments, along with Working Families Tax Cuts, aim to help American families retain more of their income and assist in retirement planning.
