# Workplace plan limit climbs to $25,500 for 2027 while the IRA ceiling stays put

URL: https://www.financialadvsr.com/article/workplace-plan-limit-climbs-to-25-500-for-2027-while-the-ira-ceiling-stays-bc00fa
Published: November 14, 2026
By: Nora Kessler, Practice & Technology Correspondent
Section: News
Publisher: Financial ADVSR (https://www.financialadvsr.com)

InvestmentNews reported that the IRS lifted the 2027 401(k) limit while holding IRA contributions flat, with wider phase-outs and higher catch-up caps shaping planning.

InvestmentNews reported that the Internal Revenue Service has raised the 2027 limit on 401(k) contributions to $25,500, up from $24,500 in 2026, while leaving the IRA contribution limit at $7,500. The report, published Nov. 13, presents the changes as new planning room for advisors working with clients on retirement saving for the year ahead.

401k Specialist reported that the IRS announced the 2027 figures in a release dated Nov. 12, and Forbes said the changes are set out in IRS Notice 2026-66. According to currentfederaltaxdevelopments.com, a companion news release, IR-2026-136, sets the cost-of-living adjustments for 2027. The 401(k) limit also applies to 403(b), governmental 457 and federal Thrift Savings Plan accounts. NTD reported that Frank J. Bisignano, the IRS Chief Executive Officer, put out a Nov. 12 statement on providing taxpayers and employers with information for the year ahead.

The catch-up contribution for workers 50 and older rises by $500 to $8,500, according to 401k Specialist. AOL reported that workers aged 60 to 63 have a higher catch-up limit of $11,750. Forbes said higher earners above $155,000 must direct catch-up contributions on a Roth basis, and a taxpayers.net guide ties that wage threshold to 2026 FICA wages. The College Investor reported that savers 50 and older can reach $8,600 in total IRA contributions.

On the IRA side, InvestmentNews reported that the base IRA limit remains $7,500, and the additional amount for those 50 and older is still $1,100. The same report said the traditional IRA deduction phases out between $83,000 and $93,000 for single filers and heads of household covered by a workplace plan. NTD reported that Roth IRA eligibility phases out for single filers between $158,000 and $173,000, and between $250,000 and $260,000 for married couples filing jointly.

Forbes reported that the Section 415(c) annual additions limit for defined contribution plans rises to $75,000 for 2027, up from $72,000 in 2026. Payroll Partners reported the 2026 baseline: the 401(k) limit rose to $24,500 from $23,500 in 2025, and the IRA limit rose to $7,500 from $7,000. Taken together, the 2027 figures widen the gap between what workers can defer through a workplace plan and what they can contribute to an IRA.

InvestmentNews, which PitchBook lists as founded in 1998 with offices at 685 Third Avenue in New York, is owned by Key Media. According to InvestmentNews's 2023 coverage of the deal, KM Business Information US Inc., a Key Media company, agreed to buy the publication for $4.1 million in cash, and the acquisition was completed on June 27, 2023. Bonhill Group had acquired the title in 2018 for $27.1 million, the same coverage said. RIABiz reported in 2023 that InvestmentNews had not posted positive cash flow for years. InvestmentNews's report on the acquisition gave Key Media's reach as more than 2.4 million unique visitors per month across its titles and more than 300 employees globally.

The figures give advisors a starting point for 2027 projections. The sources do not say how plan sponsors will adopt the higher limits or what plan document changes they may require, so those questions remain open. Readers should expect further detail as plan providers and recordkeepers publish their own guidance on the new limits.

Key facts:
- 401(k), 403(b), governmental 457 and federal TSP limit for 2027: $25,500, up from $24,500 in 2026 (401k Specialist)
- Catch-up contribution for workers 50 and older: $8,500, up $500 (401k Specialist)
- Catch-up limit for workers aged 60 to 63: $11,750 (AOL)
- IRA contribution limit unchanged at $7,500; IRA catch-up for savers 50 and older holds at $1,100 (InvestmentNews)
- Roth IRA phase-out for single filers: $158,000 to $173,000; married filing jointly: $250,000 to $260,000 (NTD)

Why it matters: For advisors, the higher plan limit raises the amount clients can defer, while the IRA limit holds, so planning conversations will increasingly focus on workplace plan capacity. The wage thresholds determine which high earners must direct catch-up contributions to Roth accounts, which affects tax planning. Teams weighing a move should confirm how each platform will apply the new figures to client accounts.

Sources:
- InvestmentNews: https://www.investmentnews.com/practice-management/irs-lifts-2027-401k-limit-to-25500-holds-ira-cap-at-7500/269012
- ntd.com: https://www.ntd.com/irs-announces-higher-401k-contribution-limits-for-2027_1185302.html
- 401kspecialistmag.com: https://401kspecialistmag.com/irs-makes-it-official-2027-401k-contribution-limit-rises-to-25500/
- taxpayers.net: https://taxpayers.net/guides/401k-contribution-limits-2027
- thecollegeinvestor.com: https://thecollegeinvestor.com/92007/2027-401k-and-ira-contribution-limits-from-the-irs/
- aol.com: https://www.aol.com/articles/irs-announces-401-k-ira-223537000.html