The IRS has announced a $24,500 annual 401(k) contribution limit for 2027, up from $23,500, with the catch-up contribution for workers over 50 increasing to $8,500, allowing maximum pre-tax savings of $33,000.
Maximize Your Savings
Financial advisors recommend adjusting contributions now to hit the new limit throughout the year. Front-loading contributions provides more time for market growth but risks missing employer match timing.
Roth 401(k) Option
Workers in lower tax brackets should consider Roth 401(k) contributions, paying taxes now at potentially lower rates than they'll face in retirement.
- New limit: $24,500 (up from $23,500)
- Catch-up (50+): $8,500
- Total possible: $33,000
- Consider Roth option if in lower bracket
