The Internal Revenue Service announced higher retirement plan limits for 2027, raising the employee contribution cap for 401(k) and similar workplace plans to $25,500, up from $24,500 for 2026.

In a news release on Nov. 12, the IRS said the 2027 cost-of-living adjustments cover 401(k), 403(b), and governmental 457 plans, as well as the federal Thrift Savings Plan. The agency also issued detailed guidance in Notice 2026-66. “Along with the Working Families Tax Cuts, 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.

For 2027, the catch-up limit for employees aged 50 and over in most 401(k), 403(b), and governmental 457 plans, plus the Thrift Savings Plan, increases to $8,500, up from $8,000 for 2026. A separate, higher catch-up applies to employees aged 60, 61, 62 and 63 in these plans; the IRS set that amount at $11,750 for 2027.

The annual contribution limit for Individual Retirement Accounts remains $7,500 for 2027. The IRA catch-up contribution limit for those 50 and over remains $1,100. The IRS said the income ranges used to determine who can deduct traditional IRA contributions, contribute to Roth IRAs, or claim the Saver’s Credit all increase for 2027.

For traditional IRAs in 2027, the deduction phase-out range is $83,000 to $93,000 for single taxpayers covered by a workplace plan. For married couples filing jointly, when the spouse making the contribution is covered by a workplace plan, the range is $133,000 to $153,000. For an IRA contributor not covered by a workplace plan who is married to someone who is covered, the range is $250,000 to $260,000. For someone married and filing a separate return who is covered by a job-based plan, the range remains $0 to $10,000.

For Roth IRAs in 2027, the income phase-out range is $158,000 to $173,000 for singles and heads of household, and $250,000 to $260,000 for married couples filing jointly. For a married individual filing a separate return, the Roth IRA phase-out range remains $0 to $10,000.

The IRS said the Saver’s Credit income cap for ABLE contributions made after Dec. 31, 2026 is $83,000 for married couples filing jointly, $62,250 for heads of household, and $41,500 for singles and married individuals filing separately.

For SIMPLE retirement accounts in 2027, the general contribution limit increases to $17,500, up from $17,000 for 2026. Under a provision in the SECURE 2.0 Act of 2022, a higher contribution amount applies to certain applicable SIMPLE plans; that higher amount is $19,100 for 2027, up from $18,100 for 2026. The catch-up limit for employees aged 50 and over in most SIMPLE plans remains $4,000. The IRS said the higher catch-up for SIMPLE participants aged 60, 61, 62 and 63 remains $5,250. A different catch-up limit for employees aged 50 and over in certain applicable SIMPLE plans remains $3,850.

Details on all 2027 retirement-related cost-of-living adjustments are in Notice 2026-66, the IRS said.