The IRS just released Notice 2026-66, and while some retirement savings limits are getting a nice bump next year, others aren’t budging, according to Jeff Levine, the chief planning officer at Focus Partners.
Here’s a look at some of the highlights from Levine’s LinkedIn post:
IRA Contribution Limit: $7,500 (NO CHANGE). The age 50+ catch-up contribution also remains unchanged at $1,100, allowing eligible individuals to contribute up to $8,600.
401(k)/403(b) Deferral Limit: $25,500 (UP $1,000). That’s an extra $1,000 employees can defer into their employer-sponsored retirement plans.
401(k)/403(b) Catch-Up Contributions: $8,500 (UP $500) for those age 50+. Meanwhile, the special “super catch-up” for those ages 60–63 increases to $11,750 (UP $500). That means eligible individuals can potentially defer as much as $37,250 in 2027.
SEP IRA Contribution Limit: $75,000 (UP $3,000). Of course, the applicable compensation and percentage limitations still apply.
Mandatory Roth Catch-Up Wage Threshold: $155,000 (UP $5,000). Employees who earned MORE than $155,000 in FICA wages from their employer in 2026 will generally be required to make any 2027 catch-up contributions to that employer’s applicable retirement plan on a Roth basis.
His nerd note: “That last threshold is based on 2026 wages, NOT 2027 wages! And remember, the mandatory Roth treatment applies only to catch-up contributions, not regular elective deferrals.”
According to Levine, these changes are another reminder that even relatively modest annual inflation adjustments can create opportunities to save more tax-efficiently.
Other noteworthy changes for 2027
Beyond the contribution limits highlighted by Jeff Levine, the IRS announced several additional adjustments affecting retirement savers.
Traditional IRA deduction phase-outs increase:
- Single taxpayers covered by a workplace retirement plan: $83,000 to $93,000, up from $81,000 to $91,000 in 2026
- Married couples filing jointly when the contributing spouse is covered by a workplace plan: $133,000 to $153,000, up from $129,000 to $149,000
- Married couples when the IRA contributor is not covered by a workplace plan but the other spouse is: $250,000 to $260,000, up from $242,000 to $252,000
Roth IRA income phase-outs increase:
- Single filers and heads of household: $158,000 to $173,000, up from $153,000 to $168,000
- Married couples filing jointly: $250,000 to $260,000, up from $242,000 to $252,000
SIMPLE IRA contribution limits increase:
- The standard employee contribution limit rises to $17,500, up from $17,000.
- The higher contribution limit available under certain SIMPLE plans increases to $19,100, up from $18,100.
- Catch-up limits remain unchanged at $4,000 for most eligible participants age 50 and older, $3,850 under certain applicable plans, and $5,250 for eligible participants ages 60 through 63.
Saver’s Credit income thresholds increase:
- Married filing jointly: $83,000, up from $80,500
- Heads of household: $62,250, up from $60,375
- Single filers: $41,500, up from $40,250
One important distinction: Beginning in 2027, the Saver’s Credit is being replaced by the Saver’s Match for eligible retirement contributions. The IRS notice’s Saver’s Credit thresholds apply to qualifying ABLE account contributions, not the new Saver’s Match.
