By Max Novak, MBA, CFP® · November 2026
The 2027 employee contribution limit for 401(k) plans is $25,500, up from $24,500 in 2026. The IRA limit stays at $7,500. HSA limits rise to $4,500 for self-only coverage and $9,000 for family coverage. The workplace limits come from IRS Notice 2026-66, and the HSA limits come from IRS Revenue Procedure 2026-24.
Here are the 2027 limits, what to set per paycheck, how much tax your contributions could save, and what to check before your first 2027 paycheck.
2027 contribution limits at a glance
The workplace limits below apply to 401(k), 403(b), and governmental 457(b) plans and the federal Thrift Savings Plan (TSP).
| Limit | 2027 |
|---|---|
| 401(k), 403(b), governmental 457(b), and TSP | |
| Employee contribution limit | $25,500 |
| Catch-up, age 50 and older | $8,500 |
| Total employee contribution with catch-up, age 50 and older | $34,000 |
| Higher catch-up, ages 60 to 63 (if the plan permits) | $11,750 |
| Total employee contribution with catch-up, ages 60 to 63 | $37,250 |
| Traditional and Roth IRAs (combined) | |
| Contribution limit | $7,500 |
| Catch-up, age 50 and older | $1,100 |
| Total with catch-up, age 50 and older | $8,600 |
| SEP IRA | |
| Employer contribution limit | $75,000 |
| Health savings accounts (HSAs) | |
| Self-only coverage | $4,500 |
| Family coverage | $9,000 |
| Catch-up, age 55 and older | $1,000 |
Sources: IRS Notice 2026-66, Rev. Proc. 2026-24, and IRS Publication 969.
The employee contribution limit is what you can defer from your paycheck. Employer matching and profit-sharing contributions don't count toward your employee deferral limit in a 401(k) or 403(b). A governmental 457(b) has a separate limit that generally includes both employee and employer contributions. The catch-up rows show the total you can contribute once you add the extra amount allowed at age 50 or older.
Traditional and Roth IRAs share one annual limit. In 2027, you can contribute $7,500 total across all your IRAs, or $8,600 if you're 50 or older, not $7,500 to each type.
For HSAs, you need to be covered by an eligible high-deductible health plan and generally can't have other disqualifying coverage or be enrolled in Medicare (IRS Publication 969). For 2027, the minimum deductibles under the standard HDHP rules are $1,750 for self-only coverage and $3,500 for family coverage. Bronze and catastrophic plans available through the Marketplace are treated as HSA-compatible even if they don't meet the standard HDHP rules, though the other HSA eligibility requirements still apply (IRS Notice 2026-05).
SIMPLE IRA and SIMPLE 401(k) limits
The standard 2027 SIMPLE limit is $17,500. Some plans qualify for a higher limit of $19,100:
- Automatically: generally for eligible employers with 25 or fewer employees who earned at least $5,000 from that employer in 2026.
- By election: eligible employers with 26 to 100 such employees can choose the higher limit if they provide a match of up to 4% of pay or a 3% contribution for every eligible employee, whether or not the employee contributes.
The age 50 catch-up is $4,000 for most SIMPLE plans, or $3,850 for those using the higher limit, and the ages 60 to 63 catch-up is $5,250. Your employer's annual SIMPLE plan notice will show the limits that apply to you (IRS Notice 2024-2, Section E; IRS Notice 2026-66).
SEP IRA contribution limit
The 2027 SEP IRA contribution limit is $75,000, up from $72,000 in 2026 (IRS Notice 2026-66). For employees, employer contributions are limited to 25% of eligible compensation or $75,000, whichever is less. If you're self-employed, the calculation generally works out to 20% of adjusted net self-employment earnings, subject to the same $75,000 cap (IRS SEP plan guide).
How much should you contribute per paycheck?
To reach the $25,500 limit evenly over the year:
- Paid biweekly (26 paychecks): about $981 per paycheck
- Paid semimonthly (24 paychecks): $1,062.50 per paycheck
Before setting your election, check two things. First, find out whether your contribution percentage also applies to bonuses, which can push you to the limit earlier than planned. Second, ask whether your employer offers a match true-up. If it doesn't, and you reach the limit early in the year, you could miss matching contributions on later paychecks.
How much could you reduce your 2027 federal income tax?
Pre-tax retirement and HSA contributions reduce your taxable income now. Here's the estimated 2027 federal income tax reduction for four common contribution amounts at several common marginal rates:
| Federal marginal rate | Pre-tax 401(k): $25,500 | Pre-tax SIMPLE, standard limit: $17,500 | Self-only HSA: $4,500 | Family HSA: $9,000 |
|---|---|---|---|---|
| 12% | $3,060 | $2,100 | $540 | $1,080 |
| 22% | $5,610 | $3,850 | $990 | $1,980 |
| 24% | $6,120 | $4,200 | $1,080 | $2,160 |
| 32% | $8,160 | $5,600 | $1,440 | $2,880 |
| 35% | $8,925 | $6,125 | $1,575 | $3,150 |
| 37% | $9,435 | $6,475 | $1,665 | $3,330 |
Estimates assume the full contribution reduces income taxed at the stated marginal rate and the employee funds the full HSA amount. State and payroll taxes are excluded.
Example for married couples: If you and your spouse each contribute $25,500 to your own pre-tax 401(k), you can contribute $51,000 combined in 2027. If the full amount offsets income taxed at 24%, that could reduce your 2027 federal income tax by $12,240.
If a contribution reduces income across more than one bracket, apply each rate to the portion of income it offsets. Pre-tax retirement contributions generally defer income tax rather than eliminate it, because withdrawals are generally taxable later. HSAs work differently: withdrawals for qualified medical expenses can be tax-free.
Common questions about 2027 limits
What is the 2027 401(k) catch-up limit if I'm 60 to 63?
If you're 60 to 63 at the end of 2027, you may contribute an extra $11,750, for a total of $37,250, if your plan permits the higher catch-up. Age is measured on December 31, so if you turn 60 any time in 2027, you qualify for the full year. If you turn 64 in 2027, the standard $8,500 catch-up applies instead.
Who has to make Roth 401(k) catch-up contributions in 2027?
If your 2026 Social Security wages from the employer sponsoring the plan were more than $155,000, your 2027 catch-up contributions to that plan generally must be Roth (IRS Notice 2026-66). Check Box 3 of your 2026 W-2 from that employer. The rule applies only to catch-up contributions, so your regular contributions up to $25,500 can still be pre-tax. It doesn't apply to IRA catch-ups.
What is the total 401(k) contribution limit for 2027, including after-tax contributions?
The 2027 combined 401(k) contribution limit is $75,000 or 100% of eligible compensation, whichever is less, before catch-up contributions (IRS Notice 2026-66). This includes regular employee deferrals (pre-tax or Roth), employer contributions, and any additional non-Roth after-tax contributions your plan allows (IRS guide to 401(k) contribution limits).
For example, if you contribute $25,500 in regular deferrals and your employer contributes $10,000, you could have up to $39,500 left for additional after-tax contributions, subject to your compensation and plan rules.
Eligible catch-up contributions can bring the total to $83,500 with the standard age-50 catch-up or $86,750 at ages 60 to 63 if your plan allows the higher catch-up.
Can I max out both my 401(k) and IRA in 2027?
Yes. The limits are separate, so you can contribute up to $25,500 to your 401(k) and $7,500 to an IRA. Your modified adjusted gross income (MAGI) affects what kind of IRA contribution makes sense (IRS Notice 2026-66):
- Traditional IRA deduction: If you're covered by a workplace plan, the deduction phases out between $83,000 and $93,000 of MAGI for single filers and between $133,000 and $153,000 for married couples filing jointly. Above those ranges, you can still contribute, but the contribution isn't deductible.
- Direct Roth IRA contributions: These phase out between $158,000 and $173,000 of MAGI for single filers and between $250,000 and $260,000 for joint filers. Above those ranges, you can't contribute directly to a Roth IRA.
If your contribution is fully deductible, a $7,500 traditional IRA contribution could reduce your federal income tax by $1,800 at a 24% marginal rate.
Do employer HSA contributions count toward the 2027 limit?
Yes. Employer contributions count toward your annual HSA limit (IRS Publication 969). If your employer contributes $1,000 to an HSA with family coverage, you generally have $8,000 of room left for 2027, assuming full-year eligibility and no catch-up contribution.
What to do before your first 2027 paycheck
- Update your payroll election. Some plans don't adjust automatically to the new limit. Check whether your election is a percentage or a dollar amount and whether it applies to bonuses.
- Confirm your employer match. Know the match formula and whether your plan offers a true-up before you front-load contributions.
- Check your catch-up status. If you're 50 or older, confirm whether your plan offers the ages 60 to 63 catch-up and whether your catch-up must be Roth.
- Set your HSA contributions. If you'll be HSA-eligible in 2027, update payroll contributions to reach the new limit, counting any employer contributions.
Want help setting your 2027 contributions?
We'd be glad to help you coordinate your 401(k), IRA, and HSA contributions with your tax plan. Book a free 30-minute intro call.
Book a free intro callThis article is for general educational purposes only and is not personalized financial, tax, legal, or investment advice. Tax examples are simplified estimates. Limits reflect IRS guidance published as of November 2026, and plan features vary by employer. Advisory services are offered through Core Planning LLC, a Registered Investment Advisor. For additional disclosures, please visit corepln.com/disclosures.
