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The maximum amount workers can funnel into a 401(k), 403(b) or 457 plan is projected to climb by $1,000 in 2027, rising from $24,500 this year to $25,500. That forecast comes from actuarial consulting firm Milliman, but it remains a projection rather than an official figure, since the Internal Revenue Service has not yet confirmed next year’s limits.
A Range of Accounts Could See Higher Caps
The anticipated increase extends well beyond the standard employee deferral limit. Several related thresholds are expected to move upward as well, according to Milliman’s projections and a personal finance guide for medical professionals.
- Maximum 401(k)/403(b)/457 deferral: $24,500 (2026) to $25,500 (2027)
- Maximum annual addition for defined contribution plans: $72,000 (2026) to $75,000 (2027)
- Super Catch-Up Contribution Limit (ages 60-63): up $500 to $11,750
- Standard catch-up contribution (age 50+): $8,000 (2026) to $8,500 (2027), bringing the total 401(k) employee contribution for those 50 and older to $34,000
- SIMPLE IRA and SIMPLE 401(k) limits: $17,000 (2026) to $17,500 (2027)
For workers approaching retirement, the combination of the base deferral limit and catch-up contributions matters a great deal. A worker aged 50 or older could theoretically set aside $34,000 in a 401(k) next year once the standard limit and the $8,500 catch-up figure are added together, assuming the projections hold.
Why the Final Number Isn’t Locked In Yet
Despite the confidence behind these figures, the increases hinge on inflation data that won’t be finalized until next year. If the Consumer Price Index increase in September 2026 comes in below 0.04%, the maximum deferral limit may only rise by $500, landing at $25,000 instead of $25,500. That threshold illustrates how sensitive these calculations are to even small shifts in inflation readings.
The IRS typically announces the following year’s retirement plan limits in October or November, once September inflation data has been finalized. Last year’s cycle followed that pattern closely: the agency confirmed the 2026 contribution limits on November 13, 2025, in Notice 2025-67. Until a similar notice arrives for 2027, every figure now circulating is an estimate built on existing inflation trends rather than a locked-in rule.
HSA Limits Are Already Official
Not every 2027 figure is still in limbo. Health Savings Account limits have already been finalized, arriving months ahead of the rest of the contribution landscape. The 2027 HSA and high-deductible health plan limits were released through Revenue Procedure 2026-24 on May 29, 2026, according to a tax guide publisher citing the IRS revenue procedure.
Under that guidance, the HSA contribution limit for single coverage will increase from $4,400 in 2026 to $4,500 in 2027. Family coverage limits will rise from $8,750 to $9,000. Because HSA limits are calculated and released on a separate, earlier timeline than retirement plan limits, savers already have certainty there even while 401(k) figures remain projections.
Compensation Caps and Testing Thresholds Also in Flux
Several lesser-known but consequential thresholds are also expected to shift. The 401(a) compensation limit, which caps the salary that can be used in retirement plan calculations, is projected to rise from $360,000 in 2026 to $375,000 in 2027. That figure is always set at five times the maximum 401(k) plan total contribution limit, tying it directly to the broader contribution projections.
The highly compensated employee threshold used for nondiscrimination testing under Section 414(q) is projected to rise from $160,000 to $170,000 for 2027, according to a pension research council’s summary of the actuarial firm’s projection. This threshold determines which employees are subject to additional testing requirements designed to ensure retirement plans don’t disproportionately benefit higher earners.
Another figure tied to Roth catch-up rules is also expected to move. The prior-year wage threshold that triggers mandatory Roth catch-up contributions to defined contribution plans is projected to rise from $150,000 to $155,000. Under current rules, catch-up contributions in 2026 must be made as Roth contributions for employees whose prior-year FICA wages from their plan sponsor exceeded $150,000, according to a personal finance blog citing IRS final regulations. If the 2027 threshold does rise to $155,000, a slightly larger group of near-retirement savers would avoid the Roth mandate and retain the choice of pre-tax catch-up contributions for one more year of eligibility.
What Happens Next
For now, workers, employers and plan administrators are left working with projections rather than certainty. The pattern from past years suggests an official announcement will likely arrive in the fall, once the IRS calculates inflation adjustments using finalized September data. Until then, the $25,500 figure — and the dozen other thresholds tied to it — remain the best available estimate, not a guarantee. Anyone planning 2027 retirement contributions around these numbers should treat them as a planning guide rather than a locked-in ceiling, at least until the IRS issues its formal notice later in the year.
