The HRTech Wire

IRS Raises 2027 Retirement Contribution Limits for 401(k)

The IRS has set the 2027 employee contribution limit for 401(k), 403(b) and 457(b) plans at $25,500, up from $24,500 in 2026. Catch-up limits rise to $8,500 for workers aged 50 and older (total $34,000) and to $11,750 for those turning 60 to 63 in 2027 (total $37,250). Payroll teams should note the Roth catch-up wage threshold rises to $155,000 in FICA wages for 2027, and that higher limits do not change deferral elections automatically.