Americans get a $1,000 boost to their retirement savings under new IRS rules — secure yours with a simple step

From next year, US workers will be able to put more of their own money into employer-sponsored 401(k) retirement plans, with the annual contribution limit rising by $1,000 to $25,500. The change could help people build retirement savings and, depending on their circumstances, reduce taxable income, but it is not a $1,000 government payment.

Workers aged 50 and over can contribute up to $34,000, while those aged 60 to 63 can contribute up to $37,250. Individual retirement account limits are unchanged. The article also notes other 2027 tax changes: the standard deduction will rise to $16,600 for individuals and $33,200 for married couples filing jointly, tax bracket thresholds will increase with inflation, and the child tax credit will rise by $100 to $2,300.