If you are budgeting next year's paycheck deductions, the number that matters most is the 401(k) contribution limit, and it is set to rise again. The 2026 figure is already locked in; the 2027 figure is still a forecast that depends on one more month of inflation data.
2026 limits, already confirmed
For 2026, the IRS set the employee elective deferral limit for 401(k), 403(b), and most 457 plans at $24,500, up from the prior year. Workers age 50 and older can add a catch-up contribution of $8,000, for a combined total of $32,500. Savers between ages 60 and 63 get a larger "super catch-up" of $11,250 instead, if their plan allows it, bringing their possible total to $35,750. The combined employee-and-employer limit for 401(k) and 403(b) plans rose to $72,000 ($80,000 with the standard catch-up). IRA contribution limits also increased, to $7,500 for the year.
The 2027 forecast
Actuarial firm Milliman's latest projection puts the 2027 limit at $25,500, a $1,000 increase over 2026. But the firm's own report flags a condition: that increase only holds if the Consumer Price Index reading for September 2026 comes in strong enough. If inflation runs cooler than expected, Milliman says the limit could rise by just $500, to $25,000, and the standard catch-up contribution could hold at $8,000 rather than stepping up to $8,500. Other trackers cluster around the same range, generally $25,000 to $25,500 for the base limit and roughly $33,500 total for savers 50 and older.
The September inflation data needed to settle the question is due out on October 14, and the IRS typically publishes its official Revenue Procedure with the final numbers in late October or early November. Last year's 2026 limits were announced on November 13, 2025, so a similar timeline is likely this year.
The Roth catch-up rule now in effect
A SECURE 2.0 provision that took effect this year changes how catch-up contributions work for higher earners. Starting in 2026, employees age 50 or older who earned more than $150,000 in FICA wages from their employer in the prior year must make their catch-up contributions on a Roth (after-tax) basis rather than pretax. Standard deferrals up to the base limit are unaffected; only the catch-up portion is subject to the rule. Workers under that income threshold can still choose pretax or Roth catch-up contributions if their plan offers both.
What to do now
- Set your 2026 contribution rate using the confirmed numbers. Don't wait for the 2027 announcement to adjust this year's payroll deferrals.
- Check whether the Roth catch-up rule applies to you. If you're 50 or older and earned over $150,000 in FICA wages last year, confirm with your plan administrator that your catch-up contributions are routed to a Roth account.
- Revisit your budget after October 14. Once the September CPI report lands, forecasters will finalize their 2027 predictions, and the IRS announcement will follow within a few weeks.
- Don't over-rely on projections. Treat the $25,000-$25,500 range as planning guidance, not a locked number, until the IRS publishes it.
The 2026 limits are final and worth acting on today. The 2027 number is close, but not official until the IRS says so, likely in late October or November.
Retirement contributions are one piece of a full financial safety net. Our life insurance calculator can help you check whether your coverage still matches your income and savings goals.