The IRS increased the maximum annual employee contribution to 401(k) plans for 2027 by $1,000, to $25,500, Fox Business reports. The additional contribution limit for those over 50 increased by $500 to $8,500, while the limit for Individual Retirement Accounts (IRAs) remained the same at $7,500. The changes are related to the annual adjustment of inflation indicators.

The IRS increased the maximum annual employee contribution to 401(k) plans for 2027 by $1,000, to $25,500, Fox Business reports. The additional contribution limit for those over 50 increased by $500 to $8,500, while the limit for Individual Retirement Accounts (IRAs) remained the same at $7,500. The changes are related to the annual adjustment of inflation indicators.