From 24/7 Wall St. · Gerelyn Terzo · · 1m 20s
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.
In brief
64-year-old engineer loses $1,750 in 401(k) contribution room as IRS rules shift. A 64-year-old engineer loses $1,750 in 401(k) contribution room after IRS rules change for 2027. Originally reported by 24/7 Wall St..
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.
The takeaway
A 64-year-old engineer loses $1,750 in 401(k) contribution room after IRS rules change for 2027.
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