401(k) Contribution Limit Rises for 2027: What Americans Need To Know
Summary
The IRS raised the standard employee contribution limit for 401(k) plans to $25,500 for 2027, up from $24,500 in 2026. Workers age 50 and older can make additional catch-up contributions, and eligible workers with lower or moderate incomes may qualify for a federal retirement savings match based on 2027 contributions.Key Facts
- The 2027 employee contribution limit is $25,500 for 401(k), 403(b), governmental 457 and federal Thrift Savings Plan accounts.
- Most eligible workers aged 50 and older can contribute up to $8,500 in catch-up savings, for a total of $34,000.
- Workers who turn 60, 61, 62 or 63 during 2027 can contribute up to $11,750 in catch-up savings, for a total of $37,250.
- Workers whose qualifying wages from their plan employer exceeded $155,000 in 2026 generally must make 2027 catch-up contributions as Roth contributions, which are taxed upfront.
- The Saver’s Match can provide eligible workers up to $1,000 annually, based on up to 50 percent of the first $2,000 in qualifying contributions; payments begin in 2028 for 2027 contributions.
- The 2027 combined contribution limit for employees and employers is $75,000, excluding eligible catch-up contributions.
- The IRA contribution limit remains $7,500 for 2027, with an additional $1,100 for people aged 50 and older.
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