401(k) contribution limits for 2026: how much can you contribute?
The IRS has increased the 401(k) contribution limit for 2026. Here's what you need to know about the new limits, catch-up contributions, and how to increase your tax-advantaged retirement savings.
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Key takeaways
This is up from $23,500 in 2025 and applies to all 401(k) plans, whether traditional or Roth.
Workers aged 50 and older can contribute an additional $8,000 (up from $7,500), for a total of $32,500. Workers ages 60 to 63 qualify for the enhanced SECURE 2.0 catch-up of $11,250, bringing their total to $35,750.
Starting in 2026, if your FICA wages exceeded $150,000 in 2025, all catch-up contributions must be made on a Roth (after-tax) basis.
How much can you contribute to a 401(k) in 2026?
The maximum employee contribution to a 401(k) in 2026 is $24,500, up from $23,500 in 2025.
This limit applies to elective deferrals, which are the amounts you choose to contribute from your paycheck on a pre-tax or Roth basis. It’s the same whether you contribute to a traditional 401(k), a Roth 401(k), or a combination of both.
Here's a full breakdown of the 2026 limits:
Employee elective deferrals (under age 50) | $24,500 | $23,500 |
Catch-up contributions (age 50+) | $8,000 | $7,500 |
Enhanced catch-up (ages 60–63, SECURE 2.0) | $11,250 | $11,250 |
Total employee contributions (age 50–59 or 64+) | $32,500 | $31,000 |
Total employee contributions (ages 60–63) | $35,750 | $34,750 |
Annual additions limit (employee + employer, before catch-up) | $72,000 | $70,000 |
Compensation cap for contribution calculations | $360,000 | $350,000 |
What are catch-up contributions?
If you're 50 or older, you can make additional contributions beyond the standard $24,500 limit. These are called catch-up contributions, and they're designed to help workers closer to retirement increase their savings.
You qualify for catch-up contributions starting in the year you turn 50, regardless of your exact birthday. These contributions are voluntary and are made on top of, not in place of, the standard deferral limit.
There’s also now an enhanced catch-up for ages 60 to 63, which was introduced by the SECURE 2.0 Act and first took effect in 2025. It allows workers in their early 60s to contribute more during the final years before they are typically eligible for Social Security and Medicare.
Under 50 | N/A | $24,500 |
50-59 | $8,000 | $32,500 |
60-63 | $11,250 | $35,750 |
64 and older | $8,000 | $32,500 |
New for 2026: mandatory Roth catch-up for high earners
Starting in 2026, a new SECURE 2.0 provision changes how catch-up contributions work for higher-earning employees. If your FICA wages from your employer exceeded $150,000 in 2025 and your plan offers Roth features, all of your catch-up contributions in 2026 must be made on a Roth (after-tax) basis.
This means:
If you earned over $150,000 in 2025 FICA wages, your catch-up contributions cannot be pre-tax. They must go into a Roth 401(k) account.
If you earned $150,000 or less, you can still choose between pre-tax and Roth for your catch-up contributions.
Regular deferrals up to the $24,500 base limit are not affected. You can still split those between pre-tax and Roth based on your preference.
If your plan doesn't currently offer a Roth 401(k) option, your employer will need to add one or restrict catch-up contributions for affected employees.
Do employer contributions count toward the 401(k) limit?
Employer contributions do not count toward your $24,500 employee deferral limit, but they do count toward the overall annual additions limit.
In 2026, the annual additions limit is $72,000. This cap includes employee elective deferrals, employer matching contributions, employer non-elective contributions, and any after-tax employee contributions. Catch-up contributions are not included in this calculation.
Here's how the combined limits break down:
Employee deferral limit: $24,500
Annual additions limit (employee + employer, before catch-up): $72,000
With standard catch-up (age 50+): $80,000
With enhanced catch-up (ages 60–63): $83,250
Employer contributions can take several forms:
Matching contributions: The employer matches a portion of your contributions, typically based on a percentage of salary or contribution amount.
Non-elective contributions: The employer contributes a fixed amount regardless of whether you contribute.
Profit-sharing contributions: The employer makes discretionary contributions based on company performance.
It's worth understanding your employer's 401(k) matching formula. Some plans match per paycheck, while others offer a year-end true-up. If your plan doesn't true-up and you front-load contributions, you could miss out on matching for the months where you've already hit the limit.
"The decision to max out a 401(k) isn't determined by income alone," Jonathan Soobin Kim, CFO, US, at Raisin explained. "It depends on what other demands are competing for those dollars. Most people are balancing retirement savings alongside emergency reserves, debt repayment, and other financial goals.
"Contribution limits are best viewed as an opportunity rather than a benchmark that every saver needs to reach. For someone approaching retirement, those tradeoffs may look very different than they do for someone decades away from leaving the workforce."
Learn more about retirement savings strategies
Are 401(k) contributions tax-deductible?
401(k) contributions aren't technically tax-deductible, but they can reduce your taxable income, which lowers what you owe in taxes for the year.
With a traditional 401(k), contributions are taken from your paycheck before taxes, so your taxable income is lower today. You'll owe taxes when you withdraw the money in retirement. This is unlike a Roth 401(k), where contributions are made after taxes so there's no upfront tax benefit. However, qualified withdrawals from a Roth are completely tax-free.
The 2026 deferral limit of $24,500 applies to both types combined. You can split your contributions between traditional and Roth in any proportion your plan allows, but the total cannot exceed the annual limit.
What happens if you contribute too much to your 401(k)?
If your total elective deferrals across all 401(k) plans exceed $24,500 in 2026 (or the applicable limit including catch-up), the excess is considered an excess deferral and needs to be corrected.
This can happen if you contribute to more than one 401(k) in the same year, such as after changing jobs. The IRS does not monitor this for you, so it's your responsibility to track your total contributions across all plans.
Excess deferral identified before April 15 of the following year | Excess is returned and taxed in the year contributed | Notify your plan administrator and request a corrective distribution |
Excess not corrected by April 15 | The excess amount is taxed twice, once in the year contributed and again when withdrawn | File an amended return and consult a tax professional |
Earnings on excess contributions | Earnings are taxable in the year distributed | Ensure both the excess and associated earnings are withdrawn and reported |
Bottom line
The 2026 contribution limits give workers more room to save for retirement. The employee deferral limit increased to $24,500, catch-up contributions rose to $8,000, and the combined employee-plus-employer cap is now $72,000. For workers ages 60 to 63, the enhanced SECURE 2.0 catch-up of $11,250 brings the total employee contribution ceiling to $35,750.
The most significant new rule this year is the mandatory Roth catch-up for high earners. If you earned over $150,000 in 2025, your catch-up contributions in 2026 must be Roth. If your plan doesn't offer Roth yet, talk to your employer about adding it.
Once you've reached your 401(k) contribution limit or want more flexibility outside of retirement accounts, a high-yield savings account can help you continue building savings. With Raisin, you can access competitive rates across multiple federally insured banks and credit unions, all from a single login.
Frequently asked questions (FAQs) about 401(k) contribution limits
What is the maximum 401(k) contribution for 2026?
The maximum employee contribution is $24,500 for workers under age 50. Workers age 50 and older can contribute up to $32,500 (including the $8,000 catch-up), and workers ages 60 to 63 can contribute up to $35,750 (including the $11,250 enhanced catch-up). The combined employee-plus-employer limit is $72,000 before catch-up contributions.
Can I contribute to both a traditional and Roth 401(k)?
Yes, if your plan offers both options. The $24,500 limit applies to your combined traditional and Roth contributions. You can split the amount in any proportion you choose, but the total across both cannot exceed the annual limit.
What happens if I change jobs and have two 401(k) plans in the same year?
The IRS treats your total elective deferrals across all plans as one combined amount. Even though each employer's plan may allow contributions up to the full limit, your total employee contributions across all plans cannot exceed $24,500 (plus any applicable catch-up). It's your responsibility to track this, as the IRS does not monitor it automatically.
Do I have to make catch-up contributions as Roth in 2026?
Whether or not you’re required to make catch-up contributions depends on your income. If your FICA wages from your employer exceed $150,000 in 2025, all catch-up contributions in 2026 must be made on a Roth (after-tax) basis. If you earned $150,000 or less, you can still choose between pre-tax and Roth for catch-up contributions.
The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.
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