# IRS raises 401(k) limits to $25,500 for 2027

> The IRS announces higher retirement savings caps for next year, with new catch-up limits for older workers and unchanged IRA contribution rules.
- Title: IRS raises 401(k) limits to $25,500 for 2027 · CNBC | Shortify
- Summary: The IRS announces higher retirement savings caps for next year, with new catch-up limits for older workers and unchanged IRA contribution rules.
- Keywords: 401(k), irs, retirement savings, contribution limits, 2027, catch-up contributions, ira, secure 2.0, CNBC
- Source: CNBC — https://cnbc.com/2026/11/12/401k-contribution-limits-2027.html
- Author: Kate Dore, CFP®, EA
- Published: 2026-11-12T17:23:14+00:00
- Read time: 1 min
- Topics: 401(k), irs, retirement savings, contribution limits, 2027, catch-up contributions, ira, secure 2.0, business, finance
## 401(k) limit rises to $25,500
The IRS announced that employees can defer $25,500 into workplace 401(k) plans in 2027, up from $24,500 in 2026. The increase applies to 401(k)s, 403(b)s and most 457 plans.
## Catch-up limits for workers 50 and older
The 401(k) catch-up contribution limit rises to $8,500 for savers 50 and older in 2027, up from $8,000 in 2026. Both amounts are in addition to the $25,500 deferral limit.
## New option for workers aged 60 to 63
Investors aged 60 to 63 can save an extra $11,750 in 2027 based on changes enacted via Secure 2.0, up $500 from 2026. This is in addition to the standard $25,500 deferral limit.
## IRA limits unchanged for 2027
The 2027 IRA contribution limit remains $7,500, unchanged from 2026. IRA catch-up contributions for investors age 50 and older will be $1,100, the same as 2026.
## Most workers don't max out contributions
Only 14% of 401(k) participants maxed out their accounts in 2025, according to Vanguard's 2026 How America Saves report. The average combined savings rate, including employer deposits, was 12.1%.
## Capture employer match before maximizing
Sean Michael Pearson, a certified financial planner with Ameriprise Financial Services in Conshohocken, Pennsylvania, says to secure your full employer match before worrying about contribution limits.

> Before worrying about contribution limits, make sure you're capturing your full employer match.
## Key takeaway

The IRS raised 401(k) contribution limits to $25,500 for 2027, up $1,000 from 2026, while introducing higher catch-up contributions for workers aged 60 to 63.