IRS Announces 2027 Retirement Contribution Limits and Social Security COLA Increase
The IRS has released the retirement contribution limits for 2027, featuring several increases designed to account for inflation. The annual 401(k) contribution limit will rise to $25,500, while catch-up contributions for individuals aged 50 and older increase to $8,500. Notably, a specialized catch-up provision for workers aged 60 to 63 has been raised to $11,750, allowing total annual contributions of up to $37,250. In addition to retirement account adjustments, Social Security benefits are set to increase by 3.6% due to the cost-of-living adjustment (COLA), providing an average monthly boost of approximately $75 for retirees. Income thresholds for IRA tax deductions and Roth IRA eligibility have also been adjusted upward, potentially allowing more high-income earners to access these retirement vehicles.
Topics: 401(k) contribution limits IRA contribution limits IRS regulations Social Security COLA
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