You can put $25,500 into a 401(k) in 2027, $1,000 more than this year; the IRA limit stays at $7,500

Workers will be allowed to put $1,000 more into a workplace retirement account next year, the Internal Revenue Service announced Thursday, Nov. 12.  The 2027 limit for 401(k) plans, 403(b) plans for nonprofit and school workers, government 457 plans and the federal Thrift Savings Plan rises to $25,500, from $24,500 this year.

The limit for an individual retirement account, or IRA, a retirement account you open on your own rather than through work, stays at $7,500, the IRS said.

Retirement limits for 2027

• Workplace plans (401(k), 403(b), 457, Thrift Savings Plan):  $25,500.
• Extra “catch-up” amount for workers 50 and older:  $8,500, up from $8,000, for a total of $34,000.
• Higher catch-up for workers ages 60 through 63:  $11,750 instead of $8,500.
• IRA:  $7,500, unchanged, plus $1,100 more for people 50 and older, also unchanged.
• SIMPLE plans (a retirement plan for small employers):  $17,500, up from $17,000.

The income ranges that decide who can contribute to a Roth IRA, a type of IRA where you pay tax now and withdraw tax-free later, also went up.  For single filers and heads of household, eligibility phases out between $158,000 and $173,000 of income in 2027, up from $153,000 to $168,000.  For married couples filing jointly, it phases out between $250,000 and $260,000, the IRS said.

If you or your spouse has a retirement plan at work, your deduction for a traditional IRA shrinks as income rises.  For a single filer covered at work, the 2027 phase-out range is $83,000 to $93,000, up from $81,000 to $91,000.

Other 2027 tax numbers the IRS set Nov. 5

These apply to the 2027 tax year, so to tax returns filed in 2028, the IRS said:

• Standard deduction:  $16,600 for single filers and married people filing separately, $33,200 for married couples filing jointly, and $24,925 for heads of household.
• Tax brackets:  The 10% rate covers taxable income up to $12,800 for single filers ($25,600 for joint filers).  The 22% rate starts above $52,025 ($104,050 joint), and the top 37% rate starts above $661,375 ($793,650 joint).
• Child tax credit:  up to $2,300 per child, $100 more than for 2026, with up to $1,800 of it refundable.
• Health flexible spending account (FSA):  up to $3,500 from your paycheck, $100 more, with up to $700 allowed to carry over where the plan permits it.
• Transit and parking benefits from an employer:  $350 a month each, up $10.
• Gifts:  You can give up to $20,000 to any one person in 2027 without counting it toward federal gift tax, up from $19,000.

The figures are federal limits.  Your employer’s plan decides how and when you can change what you contribute.

Source:  IRS news release IR-2026-136, Nov. 12, 2026, IRS Notice 2026-66 and IRS news release IR-2026-133, Nov. 5, 2026, checked Nov. 13, 2026.