IRS Sets 2027 Retirement Limits: 401(k) Cap Rises to $25,500, IRA Limit Stays at $7,500
The Internal Revenue Service (IRS) announced on November 12, in release IR-2026-136, that the amount individuals can contribute to their 401(k) plans in 2027 has increased to $25,500, up from $24,500 for 2026. The IRS also issued Notice 2026-66 with all cost-of-living adjustments affecting pension plans and other retirement-related items for tax year 2027.
The annual contribution limit for employees who participate in 401(k), 403(b), governmental 457 plans and the federal Thrift Savings Plan rises to $25,500. The limit on annual contributions to an Individual Retirement Account (IRA) remains $7,500, and the IRA catch-up limit for individuals aged 50 and over remains $1,100.
The catch-up limit for employees aged 50 and over in most 401(k), 403(b), governmental 457 and Thrift Savings plans rises from $8,000 to $8,500, so those participants can generally contribute up to $34,000 a year starting in 2027; a higher catch-up limit of $11,750 applies to employees aged 60, 61, 62 and 63. The general limit for SIMPLE retirement accounts rises from $17,000 to $17,500, with a higher amount of $19,100 for certain applicable accounts.
The income ranges for determining deductible traditional IRA contributions, Roth IRA contributions and the Saver's Credit all increased for 2027. The Roth IRA phase-out range is $158,000 to $173,000 for singles and heads of household and $250,000 to $260,000 for married couples filing jointly. The Saver's Credit income limit is $83,000 for married couples filing jointly, $62,250 for heads of household and $41,500 for singles and married individuals filing separately.
IRS Chief Executive Officer Frank J. Bisignano said that, along with the Working Families Tax Cuts, the increase in the pension limitations will help American families keep more of their hard-earned income, and that publishing the adjustments now gives taxpayers and employers the information needed to make retirement planning decisions for the year ahead.
(Source: Internal Revenue Service)
Source: Internal Revenue Service
Published by GSM · USA (original Chinese edition)
Photo: 图：美国国税局总部大楼。GSM 固定图库照片。 / Photo: Internal Revenue Service headquarters. GSM fixed image library.
