2027 401(K) Contribution Cap Rises Under New IRS Limits

WHO:

Newsweek - The article identifies Americans and older workers as people affected by the 2027 401(k) contribution limits.

CNBC - The IRS announced the new retirement-account contribution limits.

CNBC - Sean Michael Pearson, a certified financial planner with Ameriprise Financial Services in Conshohocken, Pennsylvania, advised workers to capture their full employer match before focusing on contribution limits.

CNBC - Vanguard’s 2026 How America Saves report used data from more than 1,300 qualified plans and nearly 5 million participants.

CNBC - Fidelity’s analysis covered 27,300 corporate plans and nearly 26 million participants.

WHAT:

Newsweek - Americans can contribute up to $25,500 to a 401(k) in 2027; the limit is higher for older workers.

CNBC - The 2027 employee deferral limit is $25,500, up from $24,500 in 2026. It applies to 401(k)s, 403(b)s, most 457 plans, and the federal Thrift Savings Plan.

CNBC - For savers age 50 and older, the 2027 401(k) catch-up limit is $8,500, up from $8,000 in 2026, in addition to the $25,500 deferral limit.

CNBC - Savers aged 60 to 63 can instead contribute an additional $11,750, $500 more than in 2026, under changes enacted through Secure 2.0.

CNBC - The 2027 IRA contribution limit is $7,500, unchanged from 2026; the IRA catch-up limit for people age 50 and older is $1,100, also unchanged.

CNBC - Vanguard reported that 14% of participants maxed out their 401(k)s in 2025 and that the average combined savings rate, including employer deposits, was an estimated 12.1%.

CNBC - Fidelity found that about 19% of employees were not contributing enough to receive their full company match during the second quarter of 2026. Vanguard recommended saving 12% to 15% of pay annually, including employer contributions; one-quarter of participants deferred more than 10% of earnings in 2025.

WHEN:

Newsweek - The $25,500 401(k) contribution cap applies in 2027.

CNBC - The IRS announced the limits in a release described as issued on Thursday; the article does not give a calendar date.

CNBC - Workers planning to max out their 401(k) in 2027 were advised to change their savings rate in December so it takes effect by their first January paycheck; updates can take one or two pay periods.

WHY:

CNBC - The IRS raised the 401(k) contribution limits for 2027. The article also reports that the 60-to-63 catch-up amount reflects changes enacted through Secure 2.0.

HOW:

CNBC - Employees can adjust their savings rate through their plan so the change is active by their first January paycheck; the update may take one or two pay periods.

CNBC - Pearson said: “Before worrying about contribution limits, make sure you're capturing your full employer match.”

(UPDATED November 13, 2026 15:01 UTC)

The IRS raised the 2027 401(k) contribution limit to $25,500. Older workers can contribute extra, with higher catch-up limits for some. First, capture your full employer match.