The standard employee 401(k) contribution limit rises to $25,500 for 2027, up $1,000 from 2026. The IRS announced the change on November 12, 2026. For someone choosing to contribute the full standard amount across a complete year, that is $2,125 per monthly paycheck or $1,062.50 per paycheck on a 24-paycheck schedule.
This worksheet is for an employee under age 50 using a regular 401(k), with a full year of eligible paychecks. It excludes catch-up contributions, SIMPLE and starter plans, employer contributions, and special plan restrictions. A federal maximum is not a recommendation to contribute that much. Confirm the limit and contribution options that apply to your plan with its administrator.
Turn an annual target into a payroll amount
Choose an affordable annual employee-contribution target first. Divide that target by the actual number of eligible paychecks in your 2027 payroll calendar. The examples below assume a $25,500 target, no earlier 2027 contributions, no separately withheld bonus contributions, and equal contributions except for rounding.
| Paychecks in 2027 | Amount per paycheck | Annual check |
|---|---|---|
| 12 monthly | $2,125.00 | $2,125 × 12 = $25,500 |
| 24 twice-monthly | $1,062.50 | $1,062.50 × 24 = $25,500 |
| 26 every two weeks | $980.77 for 25 checks; $980.75 for the final check | $24,519.25 + $980.75 = $25,500 |
Do not assume that every biweekly payroll calendar has exactly 26 checks. Count your actual pay dates. On a 26-check schedule, rounding every contribution to $980.77 would produce $25,500.02; the two-cent final adjustment above keeps the illustration exact. Ask payroll how its system handles annual limits and rounding.
What does the $1,000 increase mean for your budget?
Spreading an additional $1,000 over 12, 24, or 26 checks means an average additional contribution of approximately $83.33, $41.67, or $38.46 per check, respectively. These are contribution amounts, not estimates of the change in your direct deposit. Review the first affected paystub rather than subtracting these figures mechanically from take-home pay.
You can use a lower target. For example, a hypothetical $6,000 annual goal over 24 checks requires $250 per check. If your affordable target remains unchanged, the higher federal ceiling does not by itself require a payroll increase.
Keep a private payroll planning record
| Record | What to write down |
|---|---|
| 2027 target | The amount your cash-flow plan can support and your plan permits. |
| Pay dates | Actual eligible pay dates, including any bonus contribution you intend to make. |
| Amount already contributed | Reconcile applicable employee contributions before changing the remaining target; flag another employer or plan for administrator review. |
| Remaining calculation | (Chosen target − counted contributions) ÷ remaining eligible checks. |
| Payroll confirmation | Election effective date, permitted dollar or percentage setting, and treatment of rounding and employer matching. |
For a midyear example, a $6,000 target minus $2,000 already counted leaves $4,000. Across 16 remaining eligible checks, that is $250 per check. If no eligible checks remain, do not divide by zero: ask payroll about available options. If counted contributions already exceed your target, stop and reconcile the figures before making another election.
Before changing your election
Use the 2027 limit for 2027 planning; do not apply it to remaining 2026 paychecks. Ask your plan administrator about age-based catch-up rules, other-plan contributions, matching requirements, and any plan-specific limit before relying on this simplified worksheet. Confirm when a new election becomes effective and check the resulting paystub.
Next, use our net-pay and split-direct-deposit checklist to reconcile the money actually arriving in your accounts. Keep account numbers and payroll documents private; this worksheet does not collect them.
Sources and calculation notes
Official facts checked November 13, 2026: IRS release IR-2026-136, dated November 12, and IRS Notice 2026-66. The payroll tables and lower-target examples are Dollar Beacon calculations using stated assumptions. They estimate contribution allocation, not investment returns, tax savings, or an employer match.