401(k) contribution limits for 2026

The IRS increased the 401(k) employee contribution limit to $24,500 for 2026, up from $23,500 in 2025.^[1] Workers age 50 and older can contribute an additional $8,000 catch-up amount, bringing their total to $32,500. Under the SECURE 2.0 Act, workers specifically ages 60 through 63 may contribute $11,250 instead of the standard $8,000 catch-up, for a combined total of $35,750.^[3] Understanding each limit, who it applies to, and how to stay within the bounds helps you plan contributions precisely and avoid excess-contribution penalties.

2026 401(k) limits at a glance

Four separate IRS limits apply to 401(k) accounts, each serving a different purpose:^[2]

• Employee elective deferral limit (under age 50): $24,500
• Standard catch-up contribution (age 50–59 and 64+): $8,000 (total: $32,500)
• SECURE 2.0 super catch-up (ages 60–63 only): $11,250 (total: $35,750)
• Combined employee + employer limit (415(c) cap): $72,000

The elective deferral limit covers only what comes out of your paycheck — both traditional (pre-tax) and Roth 401(k) contributions combined. Employer matching and profit-sharing contributions are separate but count toward the total 415(c) limit. Most employees will hit the $24,500 ceiling long before approaching $72,000; the 415(c) cap matters primarily to high earners with generous employer contributions.

Standard catch-up contributions (age 50 and older)

Workers who reach age 50 at any point during the calendar year become eligible for the catch-up contribution.^[6] For 2026, that is an additional $8,000 per year, deposited through payroll in the same pre-tax or Roth format as your regular deferrals. You do not need to notify the IRS — you simply increase your contribution election in your plan portal to reflect the higher limit.

Note that the standard catch-up of $8,000 applies to workers age 50–59 and those 64 and older. Workers who are exactly ages 60, 61, 62, or 63 have a different, higher catch-up under SECURE 2.0 — covered in the next section. The two are mutually exclusive for any given year: you use whichever applies to your age that calendar year.

Starting in 2026, employees whose prior-year FICA wages from the employer exceeded $150,000 must make catch-up contributions as Roth (after-tax) deferrals if the plan allows Roth catch-ups.^[1] Plans without a Roth option may not permit catch-up contributions for those high earners — confirm with your benefits team before increasing deferrals.

SECURE 2.0 super catch-up for ages 60–63

The SECURE 2.0 Act introduced a higher catch-up contribution amount specifically for workers ages 60, 61, 62, and 63.^[3] Instead of the standard $8,000 catch-up, these workers may contribute $11,250 — the greater of $10,000 (indexed for inflation) or 150% of the standard catch-up limit. For 2026, 150% of $8,000 equals $11,250, which is the applicable figure.

Combined with the base $24,500 limit, workers in the 60–63 age range can defer up to $35,750 from their paychecks in 2026. This window targets the final high-earning years before typical retirement, when many workers have more cash flow available to save. If you turn 64 in 2026, you fall back to the standard $8,000 catch-up for that year, since the super catch-up window closes at age 64.

Confirm with your HR department or benefits portal that the higher limit is available before increasing your deferral rate beyond $32,500. Some plans require a specific election code or a separate contribution bucket.

Roth 401(k) and the same contribution limits

The $24,500 deferral limit (plus catch-up, if applicable) applies to your combined traditional and Roth 401(k) contributions — not to each separately.^[2]If you contribute $10,000 to a traditional 401(k) and $14,500 to a Roth 401(k), you have reached the 2026 limit. You cannot contribute $24,500 to each.

The choice between traditional and Roth affects your taxes now versus in retirement, not how much you can contribute. Traditional contributions reduce taxable income today but are fully taxable on withdrawal. Roth contributions are made with after-tax dollars but grow and are withdrawn tax-free. Your employer's matching contributions, regardless of which side you contribute to personally, always go into the traditional (pre-tax) side of the plan. For a side-by-side comparison of after-tax values under different tax rate scenarios, see our Roth vs. traditional IRA guide.

How 401(k) limits are set and when they change

The IRS adjusts 401(k) limits annually using cost-of-living increases tied to the Consumer Price Index.^[1]Adjustments are rounded to the nearest $500 increment, which means limits do not increase every single year — they hold steady when inflation is modest and jump $500 when accumulated inflation crosses the rounding threshold. The IRS typically announces the following year's limits in late October or early November.

Recent history: the employee deferral limit was $23,000 in 2024, held at $23,500 in 2025, and reaches $24,500 in 2026. When planning multi-year contribution strategies, model both a flat limit scenario and a scenario in which limits rise by $500 every one or two years.

Contribution deadlines

Unlike HSA contributions, 401(k) employee deferrals must be made within the calendar year — there is no April extension. The last contribution is taken from your final paycheck of the year, typically the last pay period ending on or before December 31.^[2]If you want to reach the full $24,500 limit, you need to set your contribution rate early enough for payroll to collect the target amount across your remaining pay periods. Waiting until November to increase your rate may not leave enough paychecks to reach the limit.

A practical approach: at the start of each year, divide $24,500 (or your applicable limit with catch-up) by the number of pay periods in the year and set that as your per-paycheck deferral. If you receive a bonus, adjust the deferral rate in your portal to capture a larger percentage of that payment before it is processed. Use our 401(k) contribution calculator to model how different deferral rates affect your paycheck and projected year-end balance, then adjust your election accordingly. For employer match mechanics and vesting, see our 401(k) employer match guide.

What to do if you over-contribute

Excess deferrals — amounts contributed above the annual limit — must be withdrawn by April 15 of the following year to avoid double taxation.^[4]If you exceed the $24,500 limit, you must request a return of excess contributions from your plan administrator, who will distribute the excess plus any earnings attributed to it. That amount is included in your gross income for the year the deferral was made. If you do not withdraw by April 15, the excess is taxed a second time when you eventually withdraw it in retirement.

The most common cause of over-contribution is changing employers mid-year. Each employer's plan operates independently, and payroll systems do not automatically know what you contributed at a prior employer earlier in the year. If you switch jobs in 2026, calculate your YTD deferrals from your previous employer and subtract that amount from $24,500to determine how much you can contribute at your new job for the remainder of the year. Your prior employer's W-2 will show your contributions, but by then it is too late to adjust — track this in real time.

401(k) vs. IRA limits and contribution order

IRA contribution limits are separate from 401(k) limits and much lower: $7,500 for 2026, with a $1,100 catch-up for age 50 and older (total $8,600).^[5]You can contribute to both a 401(k) and an IRA in the same year, subject to each account's own ceiling. Traditional IRA deductibility phases out at higher income if you are also covered by a workplace retirement plan, but Roth IRA eligibility has its own income phase-out that is independent of 401(k) participation.

The standard savings priority framework: contribute to your 401(k) up to the full employer match first (free money), then fund an IRA if eligible (more investment flexibility), then return to the 401(k) up to the annual limit. For a detailed comparison of how 401(k) and IRA rules interact — including contribution order, income limits, and when each account type makes more sense — see our 401(k) vs. IRA guide.

If you also have access to a high-deductible health plan, HSA contribution limits are separate from retirement account caps — see our HSA contribution limits guide.