Milliman Projects 2027 Retirement Plan Limits

Milliman Projects Higher Retirement Plan Contribution Limits for 2027

Independent actuarial consulting firm Milliman published its final forecast of 2027 IRS retirement plan limits on October 15, 2026, following the release of September inflation data.

Although the IRS has not yet officially announced the 2027 limits, Milliman's projections provide employers and retirement plan sponsors with useful information for preparing next year's payroll and benefit elections.

Key projected changes for 2027:

• 401(k) Employee Deferrals: The annual contribution limit is projected to increase to $25,500, up from $24,500 in 2026.
• Catch-Up Contributions: The standard catch-up limit for participants age 50 and older is projected to increase to $8,500. Participants ages 60 through 63 would qualify for a higher catch-up limit of $11,750.
• Roth Catch-Up Wage Threshold: The threshold is projected to increase from $150,000 to $155,000. Employees whose 2026 FICA wages from the sponsoring employer exceed this amount generally must make their 2027 catch-up contributions on a Roth basis.

What does this mean for business owners and accounting teams?

The projected increases affect more than employees' retirement savings opportunities. They also have implications for payroll administration, employee contribution elections, and retirement plan compliance.

In particular, employers should ensure their payroll systems can distinguish between standard employee deferrals, age based catch-up contributions, and mandatory Roth catch-up treatment for employees exceeding the applicable prior-year wage threshold.

Coordination between payroll, HR, and retirement plan administrators is important to ensure contribution limits and elections are applied correctly beginning with the first payroll of 2027.

The practical takeaway: Employers can begin reviewing their 2027 payroll configurations and retirement plan procedures now, but should confirm the final contribution limits against the official IRS announcement before implementation.

Status: Milliman's final 2027 forecast, published October 15, 2026. Official IRS confirmation pending.

Source: Milliman, 2027 IRS Limits Forecast: Final Estimates

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Disclaimer: This brief is provided by GOMEZ CPA for general informational and educational purposes only. It is not intended and should not be construed as tax, accounting, legal, investment, or financial advice.

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