401(k) and IRA Limits Rising for 2027—401(k) to Hit $25,000

Americans saving for retirement will see higher contribution ceilings in 2027 across most retirement account types. The maximum 401(k), 403(b), 457 deferral for DC plans will increase $500 from $24,500 in 2026 to $25,000 in 2027, according to actuarial forecasts from Milliman released in early August.

Key Limits for 2027

• The 401(k) deferral limit will increase by $500 to $25,000 in 2027, the super catch-up limit for those age 60 to 63 will increase by $500 to $11,750, while the regular catch-up limit will remain at $8,000
• The limit on total contributions from both the employer and the employee will increase to $75,000 in 2027, and the SEP-IRA contribution limit will increase to $75,000 in 2027
• The IRA base limit is expected to hold at $7,500—it would need to reach $7,750 to trigger the next $500 rounding step to $8,000, and the catch-up is indexed to the nearest $100; at current COLA trends it stays at $1,100

These adjustments reflect inflation indexing, raising the annual savings capacity for those with employer plans. The IRS typically publishes the following year's retirement plan limits in a Revenue Procedure released each October or November, with official 2027 figures expected in that window in late 2026.

If you work for a US employer with a 401(k) or manage a self-employment retirement account, now is the time to review your contribution strategy and ensure your payroll withholding supports reaching these new ceilings. International residents and expats working remotely for US employers should confirm that their employer plan permits contributions and check whether any foreign tax treaties affect retirement savings.

Sources

• Milliman — 2027 401(k) Contribution Limit Projected at $25,000
• IRS (irs.gov)