November 12, 2026

IRS Announces 2027 Retirement Plan Limits

The IRS has released Notice 2026-66, containing cost-of-living adjustments for 2026 that affect amounts employees can contribute to 401(k) plans and individual retirement accounts (IRAs).

Key Changes for 2027

The employee contribution limit for 401(k), 403(b) and 457(b) plans in 2027 has increased to $25,500, up from $24,500 for 2026.

Other key limits include the following:

The employee contribution limit for SIMPLE IRAs and SIMPLE 401(k) plans is increased to $17,500, up from $17,000.

The limit used to define a “highly compensated employee” (HCE) is increased to $170,000, up from $160,000.

The limit used to define a “key employee” is increased to $245,000, up from $235,000.

The annual limit for defined contribution plans (for example, 401(k) plans, profit-sharing plans and money purchase plans) is increased to $75,000, up from $72,000.

The annual compensation limit (applicable to many retirement plans) is increased to $375,000, up from $360,000.

The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan is increased to $8,500, up from $8,000.

Year-Over-Year Contribution Limit Comparison

	2027	2026
401(k), 403(b), 457(b) Deferral Limit	$25,500	$24,500
401(k), 403(b), 457(b) Catch-up Contribution Limit	$8,500	$8,000
SIMPLE Deferral Limit	$17,500	$17,000
SIMPLE Catch-up Contribution Limit	$4,000	$4,000
SIMPLE Super Catch-up	$5,250	$5,250
Annual Compensation Limit	$375,000	$360,000
Defined Benefit 415 Limit	$300,000	$290,000
Defined Contribution 415 Limit	$75,000	$72,000
Dollar Limit for HCE’s	$170,000	$160,000
Dollar Limit for Key Employees	$245,000	$235,000
Social Security Taxable Wage Base	$192,300	$184,500