IRS Announces Retirement Plan Limit Increases for 2027

American workers saving for retirement will be able to set aside an additional $1,000 in their workplace plans next year, following cost-of-living adjustments announced Friday, Nov. 13, by the Internal Revenue Service (IRS).

In technical guidance issued under Notice 2026-66, the federal agency raised the annual contribution limit for employees participating in 401(k), 403(b), governmental 457 plans and the federal government’s Thrift Savings Plan to $25,500 for tax year 2027, up from $24,500 in 2026.

Alongside the standard workplace contribution bump, the IRS increased catch-up limits for older workers participating in 401(k), 403(b), governmental 457 and Thrift Savings Plans:

For workers aged 50 and older (standard catch-up), the contribution limit rises to $8,500 for 2027, up from $8,000 in 2026. This allows these participants to contribute up to $34,000 annually starting in 2027.
For workers aged 60 to 63 (enhanced catch-up), the contribution limit is $11,750 in 2027, up from $11,250 in 2026. This allows these participants to contribute up to $37,250 annually starting in 2027.

“This increase in the pension limitations will help American families keep more of their hard-earned income,” said IRS chief executive officer Frank J. Bisignano. “With the new adjustment in place now, the IRS is giving taxpayers and employers the information needed to make retirement planning decisions for the year ahead.”

Check out the side-by-side comparison table below, which summarizes the 2026 and 2027 retirement plan limits and income thresholds from the IRS notice.

	2026 Limit / Threshold	2027 Limit / Threshold	Change
*Workplace Plans (401(k), 403(b), 457, TSP)*
Annual Elective Deferral Limit	$24,500	$25,500	+$1,000
Standard Catch-Up (Ages 50+)	$8,000	$8,500	+$500
Enhanced Catch-Up (Ages 60 to 63)	$11,250	$11,750	+$500
*Individual Retirement Accounts (IRAs)*
Annual Contribution Limit	$7,500	$7,500	No change
IRA Catch-Up Limit (Ages 50+)	$1,100	$1,100	No change
*Traditional IRA Deduction Phase-Outs*
Single (Covered by workplace plan)	$81,000 – $91,000	$83,000 – $93,000	+$2,000
Married Filing Jointly (Contributor covered)	$129,000 – $149,000	$133,000 – $153,000	+$4,000
Married Filing Jointly (Spouse covered)	$242,000 – $252,000	$250,000 – $260,000	+$8,000
Married Filing Separately (Covered by plan)	$0 – $10,000	$0 – $10,000	No change
*Roth IRA Income Phase-Outs*
Single and Head of Household	$153,000 – $168,000	$158,000 – $173,000	+$5,000
Married Filing Jointly	$242,000 – $252,000	$250,000 – $260,000	+$8,000
Married Filing Separately	$0 – $10,000	$0 – $10,000	No change
*SIMPLE Retirement Accounts*
Standard Annual Contribution Limit	$17,000	$17,500	+$500
Higher Applicable SIMPLE Limit (SECURE 2.0)	$18,100	$19,100	+$1,000
Standard Catch-Up (Ages 50+)	$4,000	$4,000	No change
Applicable Plan Catch-Up (Ages 50+)	$3,850	$3,850	No change
Enhanced Catch-Up (Ages 60 to 63)	$5,250	$5,250	No change
*Saver’s Credit Income Limits*
Married Filing Jointly	$80,500	$83,000	+$2,500
Head of Household	$60,375	$62,250	+$1,875
Single/Married Filing Separately	$40,250	$41,500	+$1,250

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