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Taxes & accounts401(k) and IRA contribution limits for 2027
With September's inflation data in, the IRS formula points to a 2027 401(k) limit of $25,500, up from $24,500 in 2026, and a catch-up of $8,500 at 50 and over. The IRA limit is expected to stay at $7,500, with a $1,100 catch-up. The IRS usually confirms the limits in late October or November.
Projected figures. This page will be updated with the official IRS numbers on the day they are released, at this same address.
2026 limits and 2027 projections
| Limit | 2026 (official) | 2027 (projected) |
|---|---|---|
| 401(k), 403(b), 457 and TSP: employee limit | $24,500 | $25,500 |
| Catch-up at 50 and over | $8,000 | $8,500 |
| Total at 50 and over | $32,500 | $34,000 |
| Higher catch-up at 60 to 63 | $11,250 | To be set by the IRS |
| IRA (traditional and Roth combined) | $7,500 | $7,500 |
| IRA catch-up at 50 and over | $1,100 | $1,100 |
| SIMPLE IRA | $17,000 | To be set by the IRS |
How the 401(k) projection is worked out
The tax code starts from $15,000 and raises it with the consumer price index. It compares the average of July to September of this year with the same months of 2005, then rounds down to a multiple of $500.
- July to September 2005: average CPI-U of 196.867.
- July to September 2026: average CPI-U of 335.279, after the September figure published in October.
- $15,000 × 335.279 ÷ 196.867 = $25,546, rounded down to $25,500.
The same calculation with 2025's figures gives $24,500, the limit the IRS set for 2026. The catch-up follows the same rule from $5,000: $8,515, rounded down to $8,500. The IRA limit uses a different index, the chained CPI, and rounds down to a multiple of $500: Bloomberg Tax projects it stays at $7,500, about $7,836 before rounding.
What it means if you max out
An extra $1,000 a year, put in monthly, into a 401(k) for 20 years, growing 5% after inflation, adds about $34,253 in today's dollars.
These figures are illustrations worked out from stated assumptions, not forecasts. Real returns vary from year to year, and taxes, fees and the order of good and bad years change the outcome. See the disclaimer.
Questions people ask
What is the 401(k) limit for 2027?
Not official yet. The IRS formula with September 2026 inflation gives $25,500, up from $24,500. With the catch-up at 50 and over, $34,000.
What is the IRA contribution limit for 2027?
Expected to stay at $7,500, the same as in 2026, for traditional and Roth IRAs combined, plus $1,100 at 50 and over.
When does the IRS announce the 2027 limits?
Usually in late October or November, after the September inflation data. The 2026 limits came out on November 13, 2025.
Related
The 401(k) calculator, the Roth IRA calculator and the 2027 tax brackets.
Sources
- Internal Revenue Service, "401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500", IR-2025-111.
- Internal Revenue Service, Notice 2025-67: 2026 limitations for retirement plans.
- U.S. Bureau of Labor Statistics, CPI for All Urban Consumers (CPI-U), U.S. city average, not seasonally adjusted (series CUUR0000SA0).
- Bloomberg Tax projection of the 2027 inflation adjustments (3.2%), as reported by Beancount on September 26, 2026.
Keep reading
- The rule of 55, explained
How the IRS exception for leaving a job at 55 works, which accounts it covers and what it does not do.
- 72(t) SEPP rules, explained
The IRS methods, the rate cap, the 5-year-or-59½ rule and what breaking the schedule costs.
- The Roth conversion ladder, explained
Convert, wait five years, withdraw: how the ladder works under the IRS rules, with a five-year example.
Last reviewed by Asier Fernández, editor, on . Educational information only, not financial advice. How we calculate