Your 401(k) Limit Is Likely Rising Again in 2027. What Savers Over 50 Should Know

If you're in your 50s or early 60s, the next few years are often your best chance to supercharge retirement savings. The kids may be through college, the mortgage may be shrinking and your income may be at its peak. The good news: the amount you can put away is expected to rise again in 2027.

The IRS hasn't announced the official numbers yet. But two of the most closely watched forecasters agree on the main figure.

The headline number: $25,500

Benefits consultants Mercer and Milliman both project that the 2027 limit for 401(k), 403(b) and most 457 plans will rise to $25,500, up from $24,500 in 2026, according to forecasts released in mid-September. Milliman noted the limit could instead land at $25,000 if September inflation came in lower than expected.

The IRS announced the 2026 limits on Nov. 13, 2025, and the 2027 figures are expected around the same time this year.

Bigger catch-up contributions

Savers age 50 and older can contribute extra money on top of the regular limit. Mercer projects:

• The standard catch-up for ages 50 and older rising to $8,500 from $8,000.
• The special "super catch-up" for ages 60 to 63 rising to $11,750 from $11,250.

That means a 61-year-old could potentially defer $37,250 into a 401(k) in 2027, before any employer match.

The new Roth rule for high earners

There's a catch for higher earners. Under SECURE 2.0, workers whose prior-year wages exceed a set threshold must make catch-up contributions as Roth (after-tax) money rather than pre-tax. That threshold is projected to rise to $155,000 in 2027, from $150,000 in 2026, according to the White Coat Investor.

For many people this isn't a bad thing. Roth money grows tax-free and has no required minimum distributions during your lifetime, which can help with taxes later in retirement and for heirs.

Other limits on the way up

Mercer also projects the annual benefit limit for traditional pension plans rising to $300,000 from $290,000, and the "highly compensated employee" threshold rising to $170,000 from $160,000. Those mostly matter to business owners and executives who design or join specialized plans.

What it means for you

Why contribution limits rise most years

The IRS adjusts most retirement account limits annually based on inflation, using a formula tied to the Consumer Price Index, similar in spirit to how Social Security's cost-of-living adjustment works. That's why 401(k) limits, catch-up amounts and income thresholds for things like Roth IRA eligibility tend to creep upward most years rather than staying fixed. In years with very low inflation, the IRS sometimes leaves a limit unchanged because the calculated increase is too small to round up to the next allowed increment.

The catch-up contribution itself dates to 2001, when Congress first let workers age 50 and older contribute extra to retirement accounts to help people who got a late start on saving, changed careers, or took time out of the workforce catch up before retirement. SECURE 2.0, the retirement law passed in 2022, built on that idea by adding the larger "super catch-up" for ages 60 through 63 and by requiring higher earners to make their catch-up contributions in Roth form starting in the next few years.

• Raise your contribution percentage now so it takes effect in January.
• If you turn 60 in 2027, check that your plan offers the larger catch-up.
• If you earn above the Roth threshold, confirm your plan offers a Roth option, or you may not be able to make catch-up contributions at all.
• Business owners should ask about a cash balance or defined benefit plan, which can allow far larger tax-deductible contributions.

The bottom line

The final numbers will come from the IRS in the weeks ahead, but a $1,000 increase in the base limit and higher catch-up amounts look likely. For savers in their peak earning years, small adjustments now can add tens of thousands of dollars to retirement savings over the next decade.

Sources: Mercer (Sept. 14, 2026), 401(k) Specialist / Milliman (Sept. 16, 2026), White Coat Investor (Sept. 29, 2026)