The IRS said workers can contribute up to $25,500 to 401(k) and other workplace retirement plans in 2027, up from $24,500 in 2026, while the annual IRA limit remains $7,500. The increase also applies to 403(b) plans, governmental 457 plans and the federal Thrift Savings Plan. Workers aged 50 and older can make an $8,500 catch-up contribution, bringing the potential total to $34,000, while those ages 60 to 63 can use an $11,750 super catch-up contribution for a total of $37,250. Traditional IRA catch-up contributions remain $1,100. Roth IRA income phase-out thresholds rise to $158,000-$173,000 for individuals and $250,000-$260,000 for married couples filing jointly. The changes are intended to reflect inflation, although only 14% of Vanguard 401(k) participants saved the maximum last year. Advisers recommend contributing enough to capture an employer match. Workplace contributions generally reduce taxable income, while Roth contributions are taxed upfront and can avoid further taxes under applicable rules. Many employers automatically enroll workers or increase deferral rates, but employees remain responsible for reviewing their elections.