Every year the IRS adjusts retirement savings limits for inflation. The 2027 numbers came out in news release IR-2026-136 on November 12, 2026, together with Notice 2026-66. They matter to millions of workers, including the many Polish Americans who save through an employer plan or an individual retirement account. The new limits apply for 2027, so the end of the year is a good time to review how much you have withheld from each paycheck.
Workplace plans: 401(k), 403(b), 457 and TSP
- Employee contribution limit: $25,500, up from $24,500 in 2026. It applies to 401(k), 403(b) and governmental 457 plans and to the federal Thrift Savings Plan (TSP).
- Catch-up contributions for workers 50 and older: $8,500, up from $8,000. Combined with the base limit, that is up to $34,000 a year.
- Higher catch-up for those who turn 60, 61, 62 or 63 in 2027: $11,750 instead of $8,500 (it was $11,250 in 2026), for a combined total of up to $37,250.
- Overall cap on employee and employer contributions (known as annual additions, relevant when an employer also contributes): $75,000, up from $72,000.
The threshold for higher earners is moving as well. Under Notice 2026-66, workers whose 2026 wages exceeded $155,000 (up from $150,000) must make their 2027 catch-up contributions as Roth contributions, meaning with after-tax dollars. The rule does not apply to SIMPLE and SEP plans.
SIMPLE plans
The employee limit for SIMPLE plans rises to $17,500 from $17,000, and to $19,100 from $18,100 in certain plans. SIMPLE catch-up amounts do not change: $4,000 for those 50 and older ($3,850 in certain plans) and $5,250 for ages 60 through 63.
Traditional and Roth IRAs
The annual IRA contribution limit remains $7,500, and the extra amount for savers 50 and older remains $1,100. What does go up are the income ranges that determine whether a traditional IRA contribution is deductible and whether you can contribute to a Roth IRA.
The traditional IRA deduction phases out within these modified adjusted gross income (MAGI) ranges:
- single filers covered by a workplace plan: $83,000 to $93,000 (2026: $81,000 to $91,000),
- married couples filing jointly, when the spouse making the contribution is covered by a workplace plan: $133,000 to $153,000 (previously $129,000 to $149,000),
- savers without a workplace plan who are married to someone who has one: $250,000 to $260,000 (previously $242,000 to $252,000),
- married filing separately, when the contributor is covered: $0 to $10,000 (unchanged).
Roth IRA contributions phase out between $158,000 and $173,000 for single filers and heads of household (previously $153,000 to $168,000), between $250,000 and $260,000 for married couples filing jointly (previously $242,000 to $252,000), and between $0 and $10,000 for married filing separately (unchanged).
What to do before 2027
To take advantage of the higher 401(k) limit, you usually need to change your payroll deferral percentage or dollar amount, either through HR or on your plan administrator’s website. Workers 50 and older, and especially those turning 60 to 63 in 2027, may want to confirm that their plan offers catch-up contributions. Anyone who earned more than $155,000 in 2026 should check how their plan handles Roth catch-up contributions.
We covered the other 2027 tax figures, including the standard deduction and tax brackets, in “IRS Sets 2027 Tax Numbers”. For the new IRS program for fixing IRA mistakes, see “IRS creates IRA error correction program”.
Key points
- 401(k), 403(b), 457 and TSP: $25,500 limit in 2027, up $1,000.
- Catch-up at 50 and older: $8,500; at ages 60 to 63: $11,750.
- IRA: $7,500 limit plus $1,100 for those 50 and older, both unchanged.
- Higher income ranges for deducting traditional IRA contributions and for contributing to a Roth IRA.
- If your 2026 wages topped $155,000, your 2027 catch-up contributions must be Roth (SIMPLE and SEP plans excluded).
Sources: IRS news release IR-2026-136, November 12, 2026, IRS Notice 2026-66 (PDF), and, for the 2026 figures, IRS news release IR-2025-111.
This article is for general information only and is not tax or financial advice.
To plan how to split your 2027 savings between a 401(k), an IRA and a Roth IRA, find a Polish-speaking advisor in the investments section of the Polish Pages directory.
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