For 2027, workers can defer up to $25,500 into a 401(k), 403(b), governmental 457 plan or the federal Thrift Savings Plan, up from $24,500, according to IRS release IR-2026-136. The IRA limit stays at $7,500. The age-50+ catch-up rises to $8,500, and people ages 60 to 63 can use a higher $11,750 catch-up instead.
Key facts: The 401(k)/403(b)/governmental 457/TSP limit rises to $25,500 for 2027, and workers 50 and older can generally contribute up to $34,000, per the IRS. · The IRA limit stays at $7,500 and the IRA catch-up stays at $1,100, but the Roth IRA income phase-out for single filers rises to $158,000–$173,000, per the IRS. · Starting in 2027, the Saver's Match replaces the Saver's Credit for retirement plan and IRA contributions. It can match up to 50% of contributions, up to $1,000 per person, per the IRS.
Every fall the IRS takes out its measuring tape, checks inflation, and moves a few bars by a few inches. This week it was the retirement accounts' turn: on Thursday, Nov. 12, 2026, the IRS published news release IR-2026-136 and Notice 2026-66, which set the 2027 limits for 401(k)s, IRAs and related accounts, and CNBC covered the announcement the same day. That release came one week after the IRS published other 2027 inflation adjustments, such as the tax brackets. Below is what changed and what stayed the same.
What Changed for 2027
| Limit | 2026 | 2027 |
|---|---|---|
| 401(k), 403(b), gov. 457, TSP deferral | $24,500 | $25,500 |
| Catch-up, age 50+ (most workplace plans) | $8,000 | $8,500 |
| Catch-up, ages 60–63 (most workplace plans) | $11,250 | $11,750 |
| IRA contribution | $7,500 | $7,500 |
| IRA catch-up, age 50+ | $1,100 | $1,100 |
| SIMPLE deferral | $17,000 | $17,500 |
| Total defined contribution limit (415(c)) | $72,000 | $75,000 |
The workplace-plan, IRA and SIMPLE figures come from the IRS release. The 415(c) figure is from Notice 2026-66, which also raises the highly compensated employee threshold from $160,000 to $170,000 and the QLAC premium limit from $210,000 to $220,000.
Age 50 and Up: Two Catch-Up Lanes
In most 401(k), 403(b), governmental 457 and TSP plans, the catch-up for people 50 and older rises to $8,500. That means they can generally contribute up to $34,000 in 2027.
Under SECURE 2.0, people who are 60, 61, 62 or 63 get a larger catch-up: $11,750 for 2027. Added to the $25,500 base, that comes to $37,250.
There is a second wrinkle for higher earners. Notice 2026-66 raises the wage threshold that determines whether a person's 2027 catch-up contributions must be designated Roth from $150,000 to $155,000, and that threshold is measured against 2026 wages. Your plan administrator can tell you whether your catch-ups will go in as Roth.
The Fine Print: The 60–63 catch-up does not stack on top of the regular one. The IRS says the $11,750 applies "instead of the $8,500", so a 61-year-old's maximum is $11,750 in catch-ups, not $20,250.
The IRA Side: Same Limits, Higher Income Ranges
The IRA contribution limit stays at $7,500, and the 50+ catch-up stays at $1,100, even though that catch-up is now indexed for inflation under SECURE 2.0. The income ranges did move, per the IRS:
- Roth IRA phase-out: $158,000–$173,000 for single filers and heads of household (up from $153,000–$168,000), and $250,000–$260,000 for married filing jointly (up from $242,000–$252,000). Married filing separately stays at $0–$10,000.
- Traditional IRA deduction, single and covered by a workplace plan: $83,000–$93,000 (up from $81,000–$91,000).
- Married filing jointly, contributing spouse covered: $133,000–$153,000 (up from $129,000–$149,000).
- Not covered, but married to someone who is: $250,000–$260,000 (up from $242,000–$252,000).
If neither spouse is covered by a workplace plan, the deduction phase-outs don't apply.
The Saver's Match Arrives in 2027
Starting in 2027, the federal government will match up to 50% of retirement contributions, up to $1,000 per person per year. The match is deposited into the saver's 401(k), 403(b), governmental 457(b) or IRA. For married couples filing jointly, it applies to each spouse. You claim it on Form 8880-A when you file your 2027 return in 2028, and the IRS says there is nothing to do in 2026.
The full 50% match goes to people with modified AGI up to $41,000 (married filing jointly), $30,750 (head of household) or $20,500 (single or married filing separately). It phases out completely at $71,000, $53,250 and $35,500. To qualify you must be 18 or older by year-end, not a student, not claimed as a dependent, and a U.S. resident for tax purposes, per the IRS. There is no minimum contribution.
The match replaces the Saver's Credit for retirement contributions. The Saver's Credit remains for ABLE account contributions, with 2027 income limits of $83,000 (married filing jointly), $62,250 (head of household) and $41,500 (single or married filing separately).
What This Means for You
This is general education, not advice. Few people reach the top limit: only 14% of participants maxed out their 401(k)s in 2025, according to Vanguard data cited by CNBC. The same report cites a Fidelity analysis finding that about 19% of employees weren't deferring enough to get their full company match in the second quarter of 2026.
Timing also matters. Experts told CNBC that anyone planning to max out in 2027 should change their savings rate in December so the new rate applies to the first January paycheck, because the update can take one or two pay periods to take effect.
Have a question about 401(k)s, IRAs or the Saver's Match? Ask us, and we may cover it in a future article.
This article is general education only. It is not tax, legal, investment or insurance advice. Check with your plan administrator or a qualified professional about your own situation.
Sources:
- IRS: 401(k) limit increases to $25,500 for 2027, IRA limit remains $7,500 (IR-2026-136, Nov. 12, 2026)
- IRS Notice 2026-66: 2027 Amounts Relating to Retirement Plans and IRAs
- IRS: Saver's Match
- CNBC: IRS announces 2027 401(k) contribution limits, raises savings cap (Kate Dore, Nov. 12, 2026)
Frequently asked questions
What is the 401(k) contribution limit for 2027?
The IRS says the employee contribution limit for 401(k), 403(b), governmental 457 plans and the federal Thrift Savings Plan is $25,500 for 2027, up from $24,500 for 2026. Workers 50 and older can generally add an $8,500 catch-up, for a total of up to $34,000.
What is the IRA contribution limit for 2027?
The IRA limit stays at $7,500 for 2027, and the catch-up for people 50 and older stays at $1,100, according to the IRS.
What is the Roth IRA income limit for 2027?
Per the IRS, the Roth IRA phase-out range for 2027 is $158,000 to $173,000 for single filers and heads of household, and $250,000 to $260,000 for married couples filing jointly. For married filing separately it stays at $0 to $10,000.
How does the age 60-63 catch-up work in 2027?
The IRS says people ages 60, 61, 62 and 63 can make catch-up contributions of up to $11,750 in 2027 in most workplace plans. That amount applies instead of the regular $8,500 catch-up, not in addition to it.
