Retirement Retirement Planning

Your 401(k) Limit Could Go up in 2027 - Here’s How to Plan Now

You might be able to contribute more to your 401(k) in 2027.

By Paige Cerulli , Edited by Laura Hohenstein

Updated Oct. 13, 2026

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Your 401(k) may be a valuable tool in helping you save for retirement and meet your retirement goals. An anticipated change to the 401(k) contribution limit in 2027 may allow you to put even more money away for retirement. To take full advantage of that change, it's helpful to start shifting your finances this fall so you're ready for the adjustment when it goes into effect in January.

Looking at past adjustments and the anticipated 2027 adjustment may help you prepare during the end of 2026.

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The current 401(k) contribution limits

In 2026, the 401(k) employee contribution limit for employee salary deferrals is $24,500. That limit also applies to 403(b) plans and most 457 plans, as well as the federal Thrift Savings Plan. The 2026 limit for combined employee and employer contributions is $72,000, so if your employer offers a matching contribution program, that higher limit allows you to take advantage of that match without reducing your own contributions.

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The projected 401(k) contribution limits

The IRS adjusts contribution limits annually to account for inflation and ensure that employees may save for retirement. Milliman, an actuarial firm, has projected that the 2027 limit may be $25,500, an increase of $1,000 compared to the 2026 limit. The limit on combined employee and employer contributions may climb to $75,000, an increase of $3,000 over the 2026 limit.

At this time, that figure is just a projection. The IRS releases 401(k) contribution limits for the following year every fall, and it's expected that the IRS may share official limits in October or November after the September inflation report is released on October 14.

The catch-up contribution rules

In 2026, workers 50 and older may make $8,000 in catch-up contributions to boost their retirement savings. That limit may increase to $8,500 in 2027.

Under the SECURE 2.0 Act, some workers aged 60 to 63 may qualify for a "super catch-up" option, allowing them to contribute $11,250 to their 401(k) in place of the standard $8,000 catch-up for 2026.

You may take several steps now to prepare for the projected increase in these retirement contribution limits.

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Adjust your payroll deferrals for January

Many 401(k) plans allow you to schedule contribution changes, so now may be the time to review your contributions and plan any changes for 2027. Review your current contributions and see if you're on track to maximize contributions for 2026; make any needed adjustments to meet your goals for 2026.

If you want to max out contributions in 2027, consider the adjustments you might have to make. For now, dividing the projected $25,500 limit by your total number of pay periods gives you an idea of how much you may want to contribute from each paycheck. Once the official figures are released, you may recheck that calculation and determine just how much you want to contribute from each paycheck.

Front-load retirement contributions

Some workers prefer to front-load their retirement contributions. If you front-load contributions, you make your maximum annual contribution as early in the year as possible, so more money is invested sooner, and it has more time to grow. Since investment markets have historically increased over time, workers who believe the market may grow soon might choose to front-load their investments.

There are potential downsides to this strategy, though. During times of market volatility, it's possible that the market could decline early in the year, and the value of the contributions you make could decline. Additionally, some employers who offer matching contributions may stop matching contributions during the remaining pay periods after you've met your annual contribution limit.

Coordinate with your employer match

Familiarize yourself with your employer contribution match policy. Many employers match 50 cents or $1 for each dollar you contribute, and that match is often capped at a certain percentage of your total pay. Coordinate with your employer as you plan your 2027 contributions.

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What happens if you over-contribute to your 401(k)

Make sure that you don't over-contribute to your 401(k). Any contributions beyond the annual limit are treated as income during the year you made the contribution; they'll be taxed a second time during distribution. If you deposit too much into your 401(k), you may request that excess contributions be returned to you by April 15 of the year after the contribution is made to avoid that double taxation.

Bottom line

The official IRS announcement of next year's contribution limits usually comes in late October or early November, so at the moment, any figures for 2027 are just projections. While you may start planning in anticipation of higher contribution limits next year, be sure to confirm any final numbers before you actually make changes.

As you plan for retirement, consider consulting with a financial planner or other professional. A financial planner may review your plans, discuss your goals, and help you make the right moves to prepare.

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