IRS Raises 2027 401(k) Contribution Limit to $25,500

According to CNBC, the IRS raised the 2027 employee contribution limit for 401(k) plans to $25,500, up from $24,500 in 2026. The limit also applies to 403(b) plans, most 457 plans and the federal Thrift Savings Plan. The catch-up limit for savers age 50 and older will increase to $8,500 from $8,000, while savers ages 60 to 63 can contribute an additional $11,750. The IRA contribution limit will remain $7,500, and the IRA catch-up limit for savers age 50 and older will stay at $1,100.