2027 401(k) Limit Projected at $25,500 After Final CPI: $34,000 at 50+, $37,250 at 60–63 and the New $1,000 Saver's Match — 9 Moves Before the IRS Confirms

Workers who turn 60 to 63 in 2027 could defer a projected $37,250 once the IRS confirms the new limits. Photo: Vitaly Gariev / Pexels (39191612), Pexels License.

The last number that decides how much you can put into a 401(k) next year is now public. On Wednesday, Oct. 14, 2026, the Bureau of Labor Statistics reported that consumer prices rose 0.6% in September and 3.7% over the past 12 months, according to CNBC’s coverage of the September CPI report. That September reading closes the July–September inflation window the tax code uses to index retirement-plan limits.

One day later, benefits consultant Marsh People and Investments updated its projections with the final CPI value. Its numbers: the 2027 employee contribution limit for 401(k), 403(b), governmental 457 plans and the Thrift Savings Plan is projected to rise to $25,500, up $1,000 from $24,500 in 2026. The age-50 catch-up is projected at $8,500, and the special catch-up for people who turn 60 to 63 is projected at $11,750.

That means a worker 50 or older could defer up to $34,000 in 2027, and someone turning 60, 61, 62 or 63 could defer up to $37,250, once the IRS confirms the figures. The official announcement has not come yet. Last year the IRS published its notice on Nov. 13, 2025, and it usually lands between late October and mid-November.

This guide lays out the official 2026 limits next to the projected 2027 limits, explains why the projections are reliable but not yet official, walks through the second year of the Roth catch-up rule, covers the brand-new Saver’s Match that starts with 2027 contributions, and ends with a nine-step checklist you can work through during open enrollment and before your last 2026 paycheck.

Sources used throughout: IRS IR-2025-111 and Notice 2025-67, IRS catch-up and 401(k) limit pages, IRS Revenue Procedure 2026-24, IRS Saver’s Match page and Notice 2026-48, the BLS September 2026 CPI report, Marsh People and Investments, Milliman and USTax Tools. All 2027 401(k) and IRA figures below are clearly marked as projections until the IRS publishes them.

What changed this week: the final inflation number is in

Most retirement-plan dollar limits are not set by Congress each year. They are indexed to inflation under Internal Revenue Code section 415(d), and the formula compares the average consumer price index for July, August and September with the same quarter a year earlier. The result is then rounded down to a fixed increment. For the 401(k) deferral limit and the age-50 catch-up, that increment is $500. That rounding is why the limit sometimes jumps by $1,000 and sometimes stays flat.

Before September’s number was released, Milliman’s 2027 IRS limits forecast (Sept. 11, 2026) already pointed to $25,500. It flagged one risk: if the September CPI increase came in below 0.04%, the deferral limit could land at $25,000 instead, and the regular catch-up could stay at $8,000. September’s actual increase was 0.6%, far above that threshold, which is why the updated Marsh projection published Oct. 15 keeps the $25,500 and $8,500 figures.

Projected vs. official: how much to trust the numbers

Because every input to the formula is now published, independent calculators have reached the same answer. USTax Tools says its method reproduces every IRS figure from 2024 through 2026 and computes $25,500 for 2027. Taxpayers.net labels the same figure “calculated, not official.” That is the right way to treat it: highly likely, but not final until the IRS issues its cost-of-living notice. Plan administrators and payroll systems generally wait for that notice before loading new limits, so do not expect your 401(k) portal to show $25,500 yet.

Why it matters even though the IRS hasn’t spoken

Many employers run benefits open enrollment in October and November. Even though 401(k) deferral elections usually are not locked by open enrollment the way health plans are, it is the moment most people review their paycheck. If you set a dollar amount per paycheck rather than a percentage, you will need to raise it for 2027 to take advantage of the higher cap. And if you plan to max out 2026, only a handful of pay periods remain before Dec. 31.

2026 official limits vs. 2027 projected limits

The 2026 column comes straight from IRS release IR-2025-111 and Notice 2025-67. The 2027 column is the Marsh projection based on final September 2026 CPI, except where noted.

Limit	2026 (official)	2027 (projected)	Change
401(k), 403(b), governmental 457, TSP employee deferrals	$24,500	$25,500	+$1,000
Catch-up, age 50+ (most plans)	$8,000	$8,500	+$500
Catch-up, turning 60–63 in the year	$11,250	$11,750	+$500
Total employee deferral, age 50+	$32,500	$34,000	+$1,500
Total employee deferral, turning 60–63	$35,750	$37,250	+$1,500
Total annual additions, employee + employer (415(c))	$72,000	$75,000	+$3,000
Compensation a plan can count (401(a)(17))	$360,000	$375,000	+$15,000
Highly compensated employee threshold	$160,000	$170,000	+$10,000
Prior-year FICA wages that force Roth catch-ups	$150,000	$155,000	+$5,000
IRA contribution (traditional + Roth combined)	$7,500	Not yet announced (one calculation shows $7,500)	Likely $0
IRA catch-up, age 50+	$1,100	Not yet announced (one calculation shows $1,100)	Likely $0
HSA, self-only / family coverage	$4,400 / $8,750	Official: $4,500 / $9,000	+$100 / +$250

Two notes on the table. First, the IRA figures are not part of the Marsh projection; USTax Tools calculates that the IRA limit and IRA catch-up stay flat because they are indexed with a different measure (chained CPI) and rounded down to $500 and $100 steps. Treat that as unconfirmed. Second, the HSA numbers are already official: IRS Revenue Procedure 2026-24 sets the 2027 HSA limits at $4,500 for self-only coverage and $9,000 for family coverage. We cover how to pair those with your health plan in HDHP vs PPO for 2027 Open Enrollment.

For a full refresher on how this year’s caps work, see our guide to the 2026 401(k) and IRA contribution limits.

Catch-up contributions in 2027: three age groups, three different caps

The IRS explains on its catch-up contributions page that anyone who is age 50 or older by the end of the calendar year can make extra contributions, if the plan allows them. You do not have to wait for your birthday: if you turn 50 on Dec. 30, 2027, you are eligible for the full 2027 catch-up.

Age 50 to 59, and 64 or older: projected $8,500

The standard catch-up is projected to rise from $8,000 to $8,500. Combined with the regular limit, that is a projected $34,000 of employee deferrals for 2027.

Turning 60, 61, 62 or 63 in 2027: projected $11,750

The SECURE 2.0 Act created a larger catch-up for employees who turn 60, 61, 62 or 63 during the calendar year. For 2026 it is $11,250. The 2027 projection of $11,750 would be the first inflation increase since the provision took effect in 2025. In practice, if you were born from 1964 through 1967, you fall into this window in 2027. If you were born in 1963, you turn 64 in 2027 and drop back to the standard $8,500 catch-up. This is easy to miss, so check your birth year against your plan’s settings.

The Roth catch-up rule enters its second year

Since Jan. 1, 2026, plans with a Roth option must make catch-up contributions Roth (after-tax) for employees whose prior-year FICA wages from that employer exceeded $150,000, according to the IRS. For 2027, the threshold is projected to rise to $155,000, and it is measured against your 2026 Social Security wages from the employer sponsoring the plan (generally Box 3 of your W-2, not Box 1). Final IRS regulations on the rule generally apply to taxable years beginning after Dec. 31, 2026, so 2027 is the first year the detailed rules apply in full; for 2026, plans could rely on a reasonable good-faith interpretation.

Two practical consequences follow. If your plan has no Roth option, high earners may not be allowed to make catch-up contributions at all. And the threshold is employer-specific: wages from a previous job generally do not count toward it. For a deeper look at the mechanics, read Catch-Up Contributions for US Workers 50+.

The bigger number: $75,000 in total additions

The employee deferral limit is only part of the picture. Section 415(c) caps the total that can go into your account in a year from all sources: your deferrals, employer matching and profit-sharing contributions, and any after-tax contributions your plan accepts. That cap is $72,000 for 2026 and projected at $75,000 for 2027. Catch-up contributions sit on top of it, so USTax Tools calculates a projected ceiling of $83,500 for someone 50 or older and $86,750 for someone 60 to 63.

Very few workers come close, but two groups should pay attention. First, people whose plans allow after-tax contributions with in-plan Roth conversions (sometimes called a “mega backdoor Roth”) can use the extra $3,000 of room. Second, self-employed people with a solo 401(k) can combine an employee deferral with an employer profit-sharing contribution, up to the same total cap. The compensation limit a plan can count when calculating employer contributions is projected to rise from $360,000 to $375,000.

Also note the rule that trips up job changers: the employee deferral limit is per person, not per plan. The IRS says participants must add up elective deferrals to all plans they participate in, including 401(k) and 403(b) plans with different employers, to see whether they exceeded the limit. Employer contributions, by contrast, are counted per employer plan under the 415(c) limit.

Under the new Saver's Match, each eligible spouse who contributes $2,000 in 2027 can get up to $1,000 deposited by the federal government. Photo: Mikhail Nilov / Pexels (6963057), Pexels License.

New for 2027: the Saver’s Match, up to $1,000 per person

For lower- and moderate-income workers, the most important 2027 change is not the $1,000 bump in the 401(k) limit. It is the Saver’s Match, a SECURE 2.0 program that starts with contributions made for 2027. The IRS says the federal government will match up to 50% of the first $2,000 you contribute to a 401(k), 403(b), governmental 457(b) or IRA, for a maximum of $1,000 per person per year, deposited directly into a retirement account. For married couples filing jointly, the match applies to each spouse, so a couple can receive up to $2,000.

The Saver’s Match replaces the Saver’s Credit for retirement-plan and IRA contributions. (ABLE account contributions can still qualify for the Saver’s Credit.) You claim it by filing the new Form 8880-A with your 2027 federal tax return in 2028, and the IRS notes you can qualify even if you owe little or no federal income tax. That is a big difference from the old credit, which only reduced tax you actually owed.

Saver’s Match income limits for 2027

Filing status	Full 50% match	Partial match	No match
Married filing jointly / qualifying surviving spouse	MAGI up to $41,000	$41,001–$70,999	$71,000 and above
Head of household	Up to $30,750	$30,751–$53,249	$53,250 and above
Single / married filing separately	Up to $20,500	$20,501–$35,499	$35,500 and above

Source: IRS Saver’s Match page (reviewed Sept. 29, 2026). Other basic requirements: you must be 18 or older by year-end, not a full-time student, not claimed as a dependent, and a U.S. resident for tax purposes.

One detail matters a lot: for the Saver’s Match, modified adjusted gross income starts with AGI and adds back pre-tax retirement contributions, according to the IRS. So making a bigger pre-tax 401(k) contribution does not pull you under an income line the way it might for other tax breaks.

Treasury and the IRS issued Notice 2026-48 on Aug. 7, 2026 (IR-2026-89), describing the rules they expect to propose. Under Executive Order 14403, Treasury plans to launch TrumpIRA.gov on Jan. 1, 2027, to list IRA providers that accept Saver’s Match deposits. Some operational details, such as exactly how deposits reach each account, are still being written into regulations.

Example: a couple that leaves $2,000 on the table

Maria and Luis file jointly and expect 2027 MAGI of about $38,000, with their pre-tax contributions already added back. If each contributes $2,000 to a workplace plan or IRA during 2027, each qualifies for the full 50% match: $1,000 apiece, or $2,000 total, deposited after they file in 2028. If only Luis contributes, Maria’s $1,000 match is simply lost. Even small amounts count: the IRS example shows $20 a month ($240 a year) earning a $120 match.

What the higher limits mean per paycheck

If you elect a flat dollar amount, divide the annual cap by your number of pay periods. These figures use the projected 2027 limits and assume you contribute evenly all year.

Projected 2027 cap	Weekly (52)	Biweekly (26)	Semimonthly (24)	Monthly (12)
$25,500 (under 50)	$490.38	$980.77	$1,062.50	$2,125.00
$34,000 (age 50+)	$653.85	$1,307.69	$1,416.67	$2,833.33
$37,250 (turning 60–63)	$716.35	$1,432.69	$1,552.08	$3,104.17

For comparison, maxing the official 2026 limit of $24,500 over 26 biweekly paychecks works out to $942.31 per check, so a biweekly saver who wants to max out in 2027 needs to add about $38.46 per paycheck.

Example: Jordan, 38, wants to max out

Jordan earns $85,000 and is paid biweekly. To reach the projected $25,500, Jordan would need to defer exactly 30% of pay ($25,500 ÷ $85,000). Setting the election as a percentage means a raise automatically increases the dollar amount; setting it as $981 per paycheck avoids overshooting. Jordan should also check whether the employer match is calculated per paycheck. If it is, and the plan has no year-end “true-up,” reaching the cap in October could mean losing match dollars in November and December. Our guide to the 401(k) employer match explains how to spot that problem.

Example: Linda, born in 1965, plans a big catch-up

Linda turns 62 in 2027, so she falls into the 60–63 window and could defer a projected $37,250. Her 2026 W-2 Social Security wages from her employer are expected to be about $160,000, which is above the projected $155,000 Roth catch-up threshold. That means her $11,750 catch-up would have to go in as Roth, while her first $25,500 can still be pre-tax or Roth, as she chooses. If her 2026 wages had been $152,000 instead, she would sit under the projected 2027 threshold and could choose pre-tax catch-ups, if her plan permits.

2026 official limits vs. 2027 figures: 401(k) and IRA numbers are projections from final September CPI (Marsh; USTax Tools) until the IRS notice; HSA limits are official (Rev. Proc. 2026-24). Chart: Dollar Lane (original).

What an extra $1,000 is worth at tax time

For a traditional (pre-tax) 401(k), every extra dollar you defer lowers your federal taxable income. A single filer whose taxable income sits in the 22% bracket (above $50,400 and up to $105,700 for 2026, per IRS release IR-2025-103) saves $220 in federal income tax for each extra $1,000 deferred. In the 24% bracket, it is $240. State income tax savings, where they apply, come on top. Pre-tax deferrals still count as wages for Social Security and Medicare tax, so payroll tax does not go down.

Roth 401(k) contributions work the other way: no deduction today, but qualified withdrawals in retirement are tax-free. If you are unsure which suits you, weigh your tax rate today against the rate you expect in retirement, and our post on projected 2027 tax brackets shows where next year’s brackets are expected to land. Those 2027 bracket figures are also projections until the IRS publishes them.

9 moves to make before the IRS confirms and before Dec. 31

1. Check your 2026 year-to-date deferrals. Pull your latest pay stub and compare the total with the official 2026 cap: $24,500, $32,500 if you are 50 or older, or $35,750 if you turn 60 to 63 this year.
2. Count the paychecks you have left. If you want to max 2026, divide the remaining room by your remaining pay dates and raise your election now. Deferrals must come out of 2026 paychecks; you cannot write a check to your 401(k) in January for 2026.
3. Add up every plan you used this year. If you changed jobs, your deferral limit covers both plans combined. If you overshoot, ask the plan to distribute the excess. The IRS says the corrective distribution must be made by April 15 of the following year, and an extension of your tax return does not extend that date.
4. Decide on dollar vs. percentage elections for 2027. Dollar elections need to be updated to use the higher cap; percentage elections adjust with pay but can overshoot or undershoot.
5. Look up your birth year. Born 1964 through 1967? You are in the projected $11,750 catch-up window for 2027. Born in 1963? You move back to the standard catch-up.
6. Estimate your 2026 FICA wages. If they will exceed the projected $155,000 at the employer that sponsors your plan, your 2027 catch-ups will need to be Roth. Confirm your plan offers a Roth option.
7. Ask about match true-ups. If you will hit the cap before December, find out whether the plan corrects missed match at year-end. If it does not, spread contributions across all pay periods.
8. Plan for the Saver’s Match. If your household income is near the limits in the table above, make sure every eligible adult in the household contributes at least $2,000 during 2027, even through an IRA.
9. Pair the HSA decision with your 401(k). If you choose an HSA-eligible plan at open enrollment, the 2027 HSA limits are already official at $4,500 or $9,000, plus $1,000 if you are 55 or older, and they are a separate bucket from your 401(k).

Common mistakes with year-end 401(k) changes

Assuming the portal already knows the new limit

Many recordkeepers will not update their maximum-contribution tools until the IRS notice is out. If you elect “max” in October, the system may still be using $24,500 for 2027. Revisit your election in December or January.

Forgetting the IRA deadline is different

A 401(k) deferral for 2026 must happen through 2026 payroll. An IRA contribution for 2026, including the $1,100 catch-up, can be made up to the due date of your tax return, not including extensions, per the IRS, which for most people is April 15, 2027. HSA contributions for 2026 follow the same tax-day deadline.

Treating projections as promises

The math points strongly to $25,500, but the IRS is the only source that makes a limit official. Build your 2027 plan around the projection and treat the notice as a final check.

When will the IRS announce the 2027 401(k) limit?

There is no fixed legal date. PayMetric Labs notes that the IRS typically confirms the figures in late October or early November, and the 2026 limits came out on Nov. 13, 2025. Watch for an IRS news release titled along the lines of “401(k) limit increases to … for 2027,” together with a technical notice listing every retirement-plan cost-of-living adjustment, including the IRA deduction and Roth IRA income phase-out ranges, which have not been projected here. Interest-rate news, including the Federal Reserve decision scheduled for Oct. 28, does not affect these limits. They depend only on the inflation data already published.

FAQ

What is the 401(k) contribution limit for 2027?

It is projected at $25,500, up from the official $24,500 for 2026, based on final September 2026 CPI data. The IRS has not announced it yet; it usually does so between late October and mid-November.

What is the 2027 401(k) catch-up limit?

Projected at $8,500 for most people 50 and older (a $34,000 total) and $11,750 for people who turn 60, 61, 62 or 63 in 2027 (a $37,250 total). Both figures are projections until the IRS notice is published.

Will the IRA limit go up in 2027?

Probably not. The IRS has not announced it, but one calculation using the indexing formula shows the $7,500 limit and the $1,100 catch-up staying flat for 2027. Confirm when the IRS releases its notice.

Who must make Roth catch-up contributions in 2027?

Workers whose 2026 FICA wages from the employer sponsoring the plan exceed a threshold projected at $155,000. For 2026, the threshold is $150,000, measured against 2025 wages.

What is the Saver’s Match?

A new federal match, starting with 2027 contributions, worth 50% of up to $2,000 contributed to a workplace plan or IRA, for a maximum of $1,000 per person. Eligibility depends on income and filing status. You claim it on Form 8880-A with your 2027 return in 2028.

Are the 2027 HSA limits official?

Yes. IRS Revenue Procedure 2026-24 sets them at $4,500 for self-only coverage and $9,000 for family coverage, with an extra $1,000 catch-up for account holders 55 and older.

Sources

• IRS, IR-2025-111: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 (Nov. 13, 2025).
• IRS, Notice 2025-67 (2026 retirement-plan cost-of-living adjustments, PDF).
• IRS, Retirement topics: Catch-up contributions (reviewed May 7, 2026).
• IRS, Retirement topics: 401(k) and profit-sharing plan contribution limits.
• IRS, Consequences to a participant who makes excess deferrals to a 401(k) plan.
• IRS, Revenue Procedure 2026-24 (2027 HSA limits, PDF).
• IRS, Saver’s Match (reviewed Sept. 29, 2026) and Notice 2026-48; IR-2026-89 (Aug. 7, 2026).
• IRS, IR-2025-103: Tax inflation adjustments for tax year 2026.
• U.S. Bureau of Labor Statistics, Consumer Price Index – September 2026 (Oct. 14, 2026); CNBC, Consumer prices rose 0.6% in September (Oct. 14, 2026).
• Marsh People and Investments, Marsh projects 2027 retirement plan limits (updated) (Oct. 15, 2026).
• Milliman, 2027 IRS Limits Forecast – August (Sept. 11, 2026).
• USTax Tools, 401(k) and IRA Contribution Limits for 2027 (Projected); Taxpayers.net, 2027 401(k) and IRA Contribution Limits; PayMetric Labs, 401(k) Limits 2027.

Disclaimer: Dollar Lane publishes general U.S. personal-finance education for a USA audience. It is not tax, legal or investment advice. All 2027 401(k), catch-up, total-additions and IRA figures in this article are projections based on published inflation data until the IRS issues its official notice; the 2027 HSA limits and Saver’s Match income limits are official IRS figures. Examples are simplified illustrations of federal income tax only. Check your plan documents and IRS.gov, or talk with a qualified tax professional, before changing your contributions.