If saving more for retirement is on your list for 2027, there's some good news coming from the IRS. You'll be able to put more money into your 401(k) next year, and depending on your age, you may be able to contribute quite a bit more than you could in 2026.
The IRS announced Thursday that the annual 401(k) contribution limit is increasing to $25,500 for 2027, up from $24,500 this year. The increase also applies to employees participating in 403(b) plans, most governmental 457 plans, and the federal government's Thrift Savings Plan.
But not every retirement account is getting an increase.
The annual contribution limit for traditional and Roth individual retirement accounts, or IRAs, will remain at $7,500 in 2027. The IRA catch-up contribution limit for people 50 and older also stays at $1,100.
For workers who are 50 and older, there's another increase worth paying attention to. The catch-up contribution limit for most 401(k), 403(b), and governmental 457 plans is rising from $8,000 to $8,500.
That means eligible workers 50 and older can generally contribute up to $34,000 to those retirement plans in 2027.
There's an even bigger opportunity for people nearing retirement. Under provisions of the SECURE 2.0 Act, workers ages 60 through 63 qualify for a higher catch-up contribution limit. For 2027, that amount is increasing to $11,750.
With that higher catch-up amount, eligible workers in that age group can contribute up to $37,250 to their plans next year.
The IRS also announced changes to income limits that determine who can deduct traditional IRA contributions, contribute to a Roth IRA, and qualify for the Saver's Credit.
For Roth IRAs, the income phase-out range for single taxpayers and heads of household is increasing to between $158,000 and $173,000, up from $153,000 to $168,000 in 2026.
For married couples filing jointly, that range is increasing to between $250,000 and $260,000, compared with $242,000 to $252,000 this year.
The amount workers can contribute to SIMPLE retirement accounts is also increasing. The general annual limit will rise from $17,000 to $17,500 in 2027, with a higher limit of $19,100 applying to certain eligible plans.
The IRS released the changes Thursday as part of its annual cost-of-living adjustments for retirement plans. The full list of updated limits is included in Notice 2026-66, available on the IRS website.
For anyone planning retirement contributions for next year, the biggest thing to remember is that the new limits aren't the same for everyone. Your age, income, and type of retirement account can all affect how much you can contribute or whether you qualify for certain tax benefits.
