401(k) Contribution Limits for 2026, Explained
A 401(k) is an employer-sponsored retirement plan that lets you contribute money from your paycheck before (or, for Roth 401(k)s, after) tax. Every year the IRS adjusts how much you can put in. The figures below come straight from IRS Notice 2025-67, the official 2026 cost-of-living announcement.
The 2026 limits
| 2026 limit | Amount |
|---|---|
| Employee deferral (under 50) | $24,500 |
| Catch-up (age 50–59 and 64+) | +$8,000 |
| Higher catch-up (ages 60–63) | +$11,250 |
| Total incl. employer contributions (415(c) limit) | $72,000 |
So in 2026 a worker under 50 can defer up to $24,500 of their own salary. At 50 or older, the $8,000 catch-up brings the personal total to $32,500. And under a SECURE 2.0 provision, workers who are ages 60 through 63 get an even larger catch-up of $11,250, for a personal total of $35,750.
The number most people miss: the match
The $24,500 cap is on your deferral. Your employer's matching contributions are on top of that, bounded only by the overall $72,000 limit (which includes both your money and theirs). An employer match is, quite literally, free money — if your plan matches, say, 50% of contributions up to 6% of pay, failing to contribute at least 6% leaves part of your compensation on the table.
A widely used priority order: (1) contribute enough to get the full employer match, (2) then consider maxing an IRA for more investment choice, (3) then come back and push the 401(k) toward the $24,500 cap if you can.
Traditional vs. Roth 401(k)
Many plans offer both flavors, and the contribution limit is shared across them. A traditional 401(k) deferral lowers your taxable income now and is taxed on withdrawal; a Roth 401(k) deferral is after-tax now but grows tax-free — the same now-versus-later logic as IRAs.
The bottom line: For 2026 you can defer $24,500, plus $8,000 if you're 50+ ($11,250 if you're 60–63). Always contribute at least enough to capture your full employer match — that's an immediate, guaranteed return you can't get anywhere else.
This is general education, not personalized tax or financial advice. Confirm your plan's specifics and the current limits with your plan administrator or a licensed advisor before acting.