The amount you can put in a 401(k) this year is still $24,500. Starting in 2027, the Internal Revenue Service says it will be $25,500.
In IR-2026-136, issued Nov. 12, 2026, the IRS announced next year’s employee elective deferral limit for 401(k), 403(b), governmental 457 plans and the federal Thrift Savings Plan. This year’s limit, $24,500, remains in effect through the end of 2026. The catch-up for employees age 50 and over in most of those plans will rise to $8,500 in 2027, from $8,000 this year, so those workers will generally be able to defer up to $34,000 starting in 2027. A higher catch-up created by the SECURE 2.0 Act applies to employees age 60, 61, 62 and 63; for 2027 that higher catch-up is $11,750, the IRS said, instead of $8,500. This year’s higher catch-up for that age group is $11,250.
IRA limits are not moving in the same way. The annual IRA contribution limit stays $7,500 in 2027, and the IRA catch-up for people 50 and over stays $1,100. SIMPLE plan deferrals will generally rise to $17,500, from $17,000 this year; the usual SIMPLE catch-up for participants 50 and over remains $4,000. The income ranges that decide whether a workplace-plan participant can deduct a traditional IRA contribution, or can fund a Roth IRA, are also shifting up for 2027. The full tables are in the same news release and in Notice 2026-66.
If you are adjusting payroll for next year, the new numbers are the ones to use. If you are still filling this year’s deferral, $24,500 is the current ceiling, not last year’s $23,500 and not yet the $25,500 that starts in January.
