IRS reveals 2027 401(k) limits and increases savings caps

The IRS announced new retirement account contribution limits for 2027, raising the employee deferral limit for 401(k), 403(b), and most 457 plans to $25,500. Catch-up contributions for savers aged 50 and older will increase to $8,500, while investors aged 60 to 63 will be able to save an extra $11,750. Meanwhile, standard IRA contribution limits will remain unchanged at $7,500, with catch-up contributions staying at $1,100 for investors aged 50 and older. Financial experts note that maximizing these contributions requires planning ahead, with many professionals advising workers to adjust their savings rates before the new year begins.