Saving for retirement? You can put more in your 401(k) in 2027

Those saving for retirement will be able to contribute more to their traditional 401(k) accounts in 2027, the Internal Revenue Service announced this week. The IRS said the amount individuals can contribute to their 401(k) plans will increase to $25,500 in 2027, up from $24,500 in 2026. The agency also announced that the income ranges used to determine eligibility for deductible contributions to traditional IRAs, contributions to Roth IRAs and the Saver’s Credit will increase for 2027. RELATED STORY | Here’s what to know about Trump’s $1,000 401(k) match plan The annual contribution limit for employees participating in 403(b) plans, governmental 457 plans and the federal government’s Thrift Savings Plan also will increase to $25,500, up from $24,500 in 2026. “Along with the Working Families Tax Cuts, this increase in the pension limitations will help American families keep more of their hard-earned income,” said IRS Chief Executive Officer Frank J. Bisignano. “With the new adjustment in place now, the IRS is giving taxpayers and employers the information needed to make retirement planning decisions for the year ahead.” The IRS said the annual IRA contribution limit will remain $7,500 in 2027. The catch-up contribution limit for people 50 and older also will remain at $1,100. RELATED STORY | Retirees are returning to the workforce in droves: Here's why