# IRS Sets 2027 401(k) Contribution Limit at $25,500, Up $1,000 By Riza Dagoc Canonical URL: https://www.tokenpost.com/news/regulation/55873 Published: 2026-11-12T20:37:36.000Z Updated: 2026-11-12T20:37:36.000Z Section: Regulation > Workers ages 50 and older can contribute an additional $8,500, while the IRA limit stays at $7,500. The Internal Revenue Service set the 2027 employee contribution limit for 401(k) plans at $25,500, increasing the amount workers can defer from their paychecks by $1,000. The new limit also covers 403(b) plans, most 457 plans and the federal Thrift Savings Plan. Workers age 50 and older can contribute an additional $8,500. Those ages 60 to 63 qualify for a higher catch-up limit of $11,750. Both amounts are added to the $25,500 base limit, allowing total contributions of up to $34,000 or $37,250, respectively. The annual limit for individual retirement accounts remains $7,500 in 2027. People age 50 and older can make an additional $1,100 in IRA catch-up contributions, unchanged from 2026. The announcement follows the IRS’ [2027 federal tax-bracket update](). Sean Michael Pearson, a certified financial planner with Ameriprise Financial Services in Conshohocken, Pennsylvania, said, “Before worrying about contribution limits, make sure you're capturing your full employer match.” ## Links in this article - [2027 federal tax-bracket update](https://www.tokenpost.com/news/regulation/50698)