2027 401(k) Limits: The IRS Hasn't Announced Them Yet, but Forecasters Expect a $25,500 Deferral Limit

Every fall, the IRS publishes next year's retirement-plan limits. As of Oct. 25, 2026, it has not done so yet, so the 2027 numbers are still projections. Below: the official 2026 figures, what forecasters expect for 2027, and why the gap matters.

The official 2026 limits

The IRS has confirmed these (news release IR-2025-111 and Notice 2025-67):

• 401(k), 403(b), most 457 plans and the federal Thrift Savings Plan: $24,500 employee deferral limit (the most you can contribute from your own paycheck)
• Catch-up for age 50 and older: $8,000 (an extra amount allowed on top of the regular limit)
• Catch-up for ages 60 to 63: $11,250
• IRA contribution limit: $7,500, with a $1,100 catch-up for age 50 and older
• Roth catch-up wage threshold: $150,000 (explained below)

What forecasters project for 2027

Milliman and Marsh published matching forecasts in October, reported by 401k Specialist on Oct. 20. These are estimates, not IRS numbers:

• Employee deferral limit: $25,500, up $1,000
• Age 50+ catch-up: $8,500, up $500
• Ages 60 to 63 catch-up: $11,750
• Total annual additions limit (employee plus employer): $75,000, up from $72,000
• Roth catch-up wage threshold: $155,000

Projections move as inflation data arrives. Milliman's March forecast had the deferral limit at $25,000 and the age 50+ catch-up flat at $8,000. Both figures rose since then, likely reflecting higher inflation readings. Forecasts can be wrong, and the final IRS numbers may differ from every projection. Credible 2027 projections for the IRA limit were not found, so none are stated here.

Why the numbers are not final

Many of these limits are indexed to inflation, meaning they adjust with the consumer price index (CPI). The IRS announces them after the new inflation data is in.

The September CPI report came out Oct. 14, showing prices up 3.7% from a year earlier. That 12-month figure is not the adjustment factor the IRS uses, so do not treat 3.7% as the cost-of-living adjustment. Some limits also move only in fixed steps, such as $500, which is why a small inflation change can produce a jump or no change at all.

When to expect the announcement

Last year the IRS released the 2026 limits on Nov. 13, 2025. Based on prior patterns, a release in early to mid-November is plausible, but the IRS has not said when, and past timing does not guarantee future timing. The agency has already announced 2027 limits for health savings accounts (HSAs), which came out earlier in the year.

The Roth catch-up rule

Under SECURE 2.0, a federal retirement law, savers aged 50 and older must make catch-up contributions as Roth contributions (after-tax, with qualified withdrawals tax-free later) if their prior-year wages from the employer sponsoring the plan exceeded an indexed threshold. The threshold is $150,000 for 2026. A projected $155,000 would apply to 2027.

Whether and how this applies depends on a particular plan and a person's wages, so plan documents or a qualified professional are the place to confirm.

How projections are typically used

Projections give a rough sense of what the figures might be, but payroll elections and plan documents are built on official numbers. Some savers choose to wait for the official notice, while others review their elections earlier; either approach depends on individual circumstances. The 2026 limits remain the legal limits until the new notice takes effect on Jan. 1, 2027. How much to save depends on individual circumstances that this article cannot assess.

This article is educational commentary on public tax and market information, not personalized investment, trading, or tax advice.