2027 401(k) and IRA Contribution Limits: Projection Tracker
The projected 2027 401(k), 403(b), and most 457(b) elective-deferral limit is $25,500, not an official ceiling yet. Under the statutory indexing formula, it is $25,500 if September 2026 CPI-U, scheduled for October 14, is at least 335.122 (about 0.04% above August) and $25,000 if lower, barring a one-month swing over 5.8%. This guide compares the projections with 2026 limits; it does not determine what a particular plan will accept.
What are the projected 2027 401(k) and IRA contribution limits?
Projected, not official. The 2027 401(k)/403(b)/most 457(b) elective deferral limit is $25,500, the age-50 catch-up is $8,500, the age 60-63 super catch-up is $11,750, and the §415(c) defined-contribution annual additions limit is $75,000. This page carries no attributable 2027 IRA forecast; the 2026 IRA limit is $7,500. These are planning estimates until the IRS issues its cost-of-living notice.
- PROJECTED 2027 401(k) deferral: $25,500.
- PROJECTED age-50 catch-up: $8,500.
- PROJECTED age 60-63 super catch-up: $11,750.
- PROJECTED §415(c) annual additions: $75,000.
- IRA limits: no attributable 2027 forecast; 2026 limit $7,500, catch-up $1,100.
- STATUTORY LINE: September 2026 CPI-U (BLS, October 14) of at least 335.122 gives a $25,500 deferral limit; lower gives $25,000.
- Update trigger: the IRS cost-of-living notice, late Oct-mid Nov 2026.
2026 vs 2027 side by side
| Limit | 2026 (official) | 2027 (projected) | Change |
|---|---|---|---|
| 401(k)/403(b)/457(b) elective deferral§402(g) — Projected +$1,000 in Milliman's August 2026 forecast published September 11. The forecast remains subject to September CPI data. | $24,500 | $25,500 | +$1,000 |
| Age 50+ catch-up (401(k)/403(b)/governmental 457(b))§414(v) — Projected +$500 in Milliman's August 2026 forecast published September 11. The forecast remains subject to September CPI data. | $8,000 | $8,500 | +$500 |
| Age 60-63 “super” catch-upSECURE 2.0 §109 — Available only in the years you are 60, 61, 62 or 63. Not available at 64 and older. | $11,250 | $11,750 | +$500 |
| Defined-contribution annual additions§415(c) — Total of employee deferrals, employer contributions and forfeitures. Drives solo 401(k) and mega-backdoor planning. | $72,000 | $75,000 | +$3,000 |
| Traditional/Roth IRA contribution§219(b)(5) — No attributable 2027 forecast: Milliman does not forecast IRA limits, so this page shows none. Indexed in $500 increments; the IRS notice sets the 2027 amount. | $7,500 | Not forecast | — |
| IRA catch-up (age 50+)§219(b)(5)(B) — No attributable 2027 forecast. Indexed since SECURE 2.0 in $100 increments; the IRS notice sets the 2027 amount. | $1,100 | Not forecast | — |
What October 14 decides
BLS is scheduled to publish September 2026 CPI-U (all items, U.S. city average, not seasonally adjusted, series CUUR0000SA0) on October 14 at 8:30 a.m. ET. That one number completes the July–September average the statute reads, and the 2027 plan limits follow from it by formula, weeks before the IRS notice.
The line: 335.122. With July at 333.918 and August at 334.980, a September index of at least 335.122 (about 0.04% above August) moves the deferral limit to $25,500; anything lower leaves it at $25,000.
| Limit | 2026 | September under 335.122 | September 335.122 or higher |
|---|---|---|---|
| 401(k)/403(b)/457(b) elective deferral | $24,500 | $25,000 | $25,500 |
| Age 50+ catch-up (401(k)/403(b)/governmental 457(b)) | $8,000 | $8,000 | $8,500 |
| Age 60-63 “super” catch-up | $11,250 | $11,750 | $11,750 |
Milliman's forecast, used in the table at the top of this page, matches the higher column. Both columns hold for any September within 5.1% of August; a larger one-month move would cross another step. The IRS notice, normally late October to mid-November, makes the figures official.
Why the limits move in steps: the statute rounds each increase down to the next step, never to the nearest one.
- Deferral limit, IRC §402(g)(4): “any increase under this paragraph which is not a multiple of $500 shall be rounded to the next lowest multiple of $500.”
- Catch-ups, IRC §414(v)(2)(C)(i): “any increase under this subparagraph which is not a multiple of $500 shall be rounded to the next lower multiple of $500.” The ages 60-63 amount is adjusted “in the same manner as adjustments under the preceding sentence”, from the quarter beginning July 1, 2024.
- Annual additions, IRC §415(d)(4)(B): “Any increase under subparagraph (C) of paragraph (1) which is not a multiple of $1,000 shall be rounded to the next lowest multiple of $1,000.”
Each adjustment is “based on the increase in the applicable index for the calendar quarter ending September 30 of the preceding calendar year over such index for the base period” (§415(d)(2)(A)). The rounding applies to the increase, not the total, which is why the ages 60-63 amount, which started at $11,250, does not sit on a $500 grid.
Mandatory Roth catch-up in 2027
SECURE 2.0 §603 added IRC §414(v)(7). For a participant “whose wages (as defined in section 3121(a)) for the preceding calendar year from the employer sponsoring the plan exceed” the threshold, catch-ups are allowed “only if any additional elective deferrals are designated Roth contributions”. The rule reaches the catch-up only; regular deferrals can stay pre-tax.
2027 threshold: no attributable forecast is carried, so this page shows the figure once it is calculated from September 2026 CPI-U, scheduled for October 14, or set by the IRS notice. The threshold that governs 2026 catch-ups (2025 wages) is $150,000. The 2027 one is adjusted only for cost-of-living increases (§414(v)(7)(E)), so 2026 FICA wages at or under $150,000 keep pre-tax catch-ups in 2027.
- Wages means FICA wages (§3121(a)) from the employer sponsoring the plan in the year before the catch-up: 2026 wages decide 2027 catch-ups.
- If the rule applies to anyone in the plan, the plan can offer catch-ups only if it lets every eligible participant make them as designated Roth contributions (§414(v)(7)(B)).
- SEP and SIMPLE IRA arrangements are exempt (§414(v)(7)(C)).
- The statute's $145,000 is indexed from the quarter beginning July 1, 2023, and “any increase under this subparagraph which is not a multiple of $5,000 shall be rounded to the next lower multiple of $5,000” (§414(v)(7)(E)).
What to do during December open enrollment
- Recheck your election after the IRS notice. A percentage election picks up a higher limit only if it was already pushing past the old one; a percentage set to hit exactly the 2026 limit stays at the 2026 amount unless your pay rises. A dollar election stays where you set it. Update either once the 2027 limits are official.
- Watch the pay-period math. Front-loading deferrals can end your contributions before December and cost you employer match in the remaining periods unless your plan has a true-up.
- Turning 60, 61, 62 or 63 in 2027? The super catch-up window is four years long and does not carry forward. Model it before you set the election.
- Solo 401(k) and mega-backdoor planners should key off the §415(c) annual additions figure, not the deferral limit.
Worked example: the December deferral election
Say you earn $245,000 and elected 10% for 2026 because it lands exactly on the $24,500 limit. Your pay stays the same in 2027, and the projected 2027 elective deferral limit is $25,500.
- Leave it alone: 10% of $245,000 still defers $24,500, $1,000 under the 2027 limit.
- Raise the percentage: reaching $25,500 takes 10.41% of pay. A plan that takes whole percentages needs 11%, which reaches the limit before the last paycheck; that can cost employer match in the remaining pay periods unless the plan has a true-up.
- Switch to dollars: $980.76 a paycheck over 26 biweekly paychecks comes to $25,499.76, just inside $25,500.
- 50 or older: the age-50 catch-up adds $8,500, for $34,000 in all ($1,307.69 a paycheck). In the years you are 60 to 63 the catch-up is $11,750 instead, for $37,250 ($1,432.69 a paycheck). With 2026 FICA wages of $245,000 from the same employer, above the $150,000 threshold that governs 2026 catch-ups, check the 2027 Roth catch-up threshold above before electing the catch-up pre-tax.
If September 2026 CPI-U comes in under 335.122, the 2027 limit is $25,000 instead: $961.53 a paycheck, or 10.20% of pay.
Plans administer the amounts the IRS announces, so set the election in December and recheck it once the notice is out.
Why these are projections
IRC §415(d) indexes these limits to a CPI measure and then rounds each one to its own increment — $500 for the deferral limit, $1,000 for annual additions, $100 for the IRA catch-up. Because of rounding, a projection made before the September CPI print can be off by one full increment in either direction. Treat every figure above as a planning estimate, not a limit you can fund against.
Update trigger: the IRS cost-of-living notice for 2027, expected late October to mid-November 2026.
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ReadFrequently asked questions
- What is the 2027 401(k) contribution limit?
- Nothing is official yet. Milliman's August 2026 forecast puts the 2027 elective deferral limit at $25,500, up from $24,500 in 2026. The IRS sets the binding number in its annual cost-of-living notice, normally released between late October and mid-November.
- What is the 401(k) max for 2027?
- Projected, not official: The 2027 401(k), 403(b) and most 457(b) elective deferral limit is $25,500. Workers 50 and older add a $8,500 catch-up; in the years you are 60 to 63 the catch-up is $11,750 instead. The §415(c) ceiling on employee and employer additions combined is $75,000. These are Milliman's August 2026 forecast figures. Under the statutory formula, the deferral limit is $25,500 if September 2026 CPI-U, scheduled for October 14, is at least 335.122, and $25,000 if lower.
- What is the max 401(k) contribution for 2027, counting employer money?
- Projected, not official: $75,000 is the 2027 §415(c) ceiling on employee deferrals and employer contributions combined, and §415(c) also caps them at 100% of compensation. Catch-up contributions sit outside that ceiling (§414(v)(3)(A)), so with catch-ups it is $83,500 at 50 and older, and $86,750 in the years you are 60 to 63. A plan can set lower limits. The IRS notice sets the binding figures.
- What is the 401(k) catch-up limit for 2027?
- Projected, not official: $8,500 at 50 and older in a 401(k), 403(b) or governmental 457(b). In the years you are 60, 61, 62 or 63 it is $11,750 instead, and at 64 it returns to the age-50 amount. Catch-ups must be Roth when your prior-year FICA wages from the employer sponsoring the plan exceed an indexed threshold (§414(v)(7)); the threshold for 2026 catch-ups is $150,000, and the 2027 figure follows from September 2026 CPI-U.
- When does the IRS announce 2027 retirement limits?
- Late October to mid-November 2026. The 2026 limits were announced on November 13, 2025. There is no statutory announcement date, so the release can slide.
- Is the age 50 catch-up going up in 2027?
- Projected to rise to $8,500 in 2027, from $8,000 in 2026. The §414(v) catch-up is indexed in $500 steps: an increase that isn't a multiple of $500 is rounded down to the next lower multiple of $500, so it moves in steps rather than smoothly.
- What about the age 60-63 super catch-up?
- Projected at $11,750, from $11,250 in 2026. It is available only in the calendar years you are 60, 61, 62 or 63 — it disappears at 64.
- Should I set my December deferral election using projected numbers?
- Recheck your election once the IRS notice is out. A percentage set to hit exactly the 2026 limit won't rise with a higher 2027 limit unless your pay rises, so it needs updating too. If your plan only accepts dollars, set it to the 2026 limit in December and update the amount in January.
Sources & References
Primary references used for this content
BLS CPI-U, U.S. city average, all items, not seasonally adjusted (CUUR0000SA0), indexed under IRC §415(d)
The July and August 2026 index values the September line is computed from; September is scheduled for October 14
View on data.bls.gov
2027 IRS limits forecast (August 2026)
Milliman's August 2026 forecast — the basis for the qualified-plan figures on this page. Milliman does not forecast IRA limits, so this page shows no projected IRA amounts.
View on milliman.com
Cost-of-living adjustments to qualified plan limits
The indexing and rounding rules that determine the official numbers
View on law.cornell.edu
Cost-of-living adjustment of the elective deferral limit
The $500 round-down rule for the deferral limit
View on law.cornell.edu
Catch-up contributions, including the ages 60-63 amount and the Roth catch-up wage threshold
The indexing rules for the catch-ups and the Roth catch-up wage threshold, and the Roth requirement in §414(v)(7)
View on law.cornell.edu
401(k) limit increases to $24,500 for 2026; IRA limit increases to $7,500
The official 2026 baseline, announced November 13, 2025
View on irs.gov
✓6 primary sources; links re-checked on a weekly rotation by the source watcher
Disclaimer: This calculator provides estimates for educational purposes only. Not tax, legal, or financial advice. Results may vary based on your specific circumstances. Consult a qualified CPA or tax professional for personalized guidance.