# IRS Raises 401(k) Limit to $25,500 for 2027

> 64-year-old engineer loses $1,750 in 401(k) contribution room as IRS rules shift.
- Title: IRS Raises 401(k) Limit to $25,500 for 2027 · 24/7 Wall St.
- Summary: 64-year-old engineer loses $1,750 in 401(k) contribution room as IRS rules shift.
- Keywords: irs, contribution ceiling, 2027, 64-year-old, stock market, retirement planning, 24/7 Wall St.
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/2026/11/13/irs-raises-401k-limit-to-25500-for-2027-as-stocks-whipsaw-hes-turning-64-and-doesnt-realize-his-contribution-ceiling-is-actually-falling-by-1750
- Author: Gerelyn Terzo
- Published: 2026-11-13T23:04:23+00:00
- Read time: 1 min
- Topics: irs, contribution ceiling, 2027, 64-year-old, stock market, retirement planning
## IRS Raises 401(k) Limit to $25,500 for 2027
The IRS raised the standard 401(k) contribution limit to $25,500 for 2027, up $1,000 from this year’s $24,500.
## Enhanced Catch-Up for Ages 60-63
Workers turning 60 through 63 in 2027 qualify for an enhanced catch-up of $11,750, bringing their total to $37,250.
## Engineer's Contribution Ceiling Drops
A 63-year-old engineer with $900,000 in his 401(k) loses $1,750 in contribution room when he turns 64 in 2027.
## Why the $1,750 Drop Matters
The lost room affects tax savings and may require Roth conversions if his 2026 Social Security wages exceed $155,000.
## Eligibility Rules for 2027
The 2027 enhanced limit covers people who turn 60, 61, 62, or 63 in 2027, but turning 64 puts him out for all of 2027.
## Action Steps for 2026
Check your 2026 total, confirm your plan’s catch-up setup, and max the 2026 window before December 31.
## Market vs. Contribution Room
Market swings affect current account value, while the $1,750 loss is a permanent reduction in future contribution capacity.
## Key takeaway

A 64-year-old engineer loses $1,750 in 401(k) contribution room after IRS rules change for 2027.