IRS Increases 2027 Retirement Account Contribution Limits

The Internal Revenue Service announced updated retirement account contribution limits for 2027, increasing the employee deferral limit for 401(k), 403(b), most 457 plans, and the federal Thrift Savings Plan to $25,500. This represents an increase from the 2026 limit of $24,500.

For savers aged 50 and older, the catch-up contribution limit will rise to $8,500. Under Secure 2.0 provisions, investors aged 60 to 63 can contribute an additional $11,750, which is a $500 increase over the previous year.

Other limits remain stagnant for the coming year. The IRA contribution limit is unchanged at $7,500, and catch-up contributions for those 50 and older will stay at $1,100. These changes are part of a broader set of 2027 inflation adjustments released by the agency, which also include updates to estate tax exemptions and federal income tax brackets.