The IRS set the 2026 employee 401(k) contribution limit at $24,500 — up $1,000 from $23,500 in 2025. If you’re 50 or older, you can add another $8,000 in catch-up contributions for a total of $32,500. And if you’re between 60 and 63, a SECURE 2.0 super catch-up provision lets you contribute up to $35,750 this year.
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2026 401(k) Contribution Limits at a Glance
I get a lot of questions about 401(k) contribution limits each year, especially around how catch-up contributions work and what the employer match rules are. Here’s the full breakdown for 2026.
There are two main types of 401(k) contributions: your own elective deferral (what you put in from your paycheck) and your employer’s matching contribution. Each has its own limit, and there’s an overall combined cap that covers both.
The table below shows how 2026 compares to recent years:
| Year | Employee Max | Max All Contributions | Catch-Up (age 50+) | Super Catch-Up (age 60–63) |
|---|---|---|---|---|
| 2026 | $24,500 | $72,000 | $8,000 | $11,250 |
| 2025 | $23,500 | $70,000 | $7,500 | $11,250 |
| 2024 | $23,000 | $69,000 | $7,500 | N/A |
| 2023 | $22,500 | $66,000 | $7,500 | N/A |
| 2022 | $20,500 | $61,000 | $6,500 | N/A |
| 2021 | $19,500 | $58,000 | $6,500 | N/A |
Note: The super catch-up column shows the total catch-up limit for ages 60–63, not the additional amount above the regular catch-up. So in 2026, workers in that age range can contribute up to $24,500 + $11,250 = $35,750 total.
Click here for the full set of 401(k), Roth IRA and Traditional IRA contribution limits
What I’m Watching for 2027
The IRS typically releases the following year’s contribution limits in late October or early November. Based on recent inflation trends — the 2025→2026 bump was $1,000 on the employee limit — I’d expect the 2027 employee cap to land around $25,000 or $25,500, depending on where CPI settles. The IRS rounds to the nearest $500, so it takes a meaningful COLA adjustment to move the needle.
The catch-up for ages 50+ could tick up to $8,500 if inflation cooperates. The super catch-up for ages 60–63 is set at 150% of the regular catch-up — so if regular catch-up rises to $8,500, the super catch-up would move to $12,750. I’ll update this table as soon as the IRS makes the official announcement.
Employee Contribution Limits
The $24,500 employee limit applies to traditional (pre-tax) and Roth 401(k) contributions combined. You can split your deferral between the two however you like — but the total across both can’t exceed $24,500.
This limit applies across all 401(k) and 403(b) plans combined. If you switch jobs mid-year and contribute to two plans, both contributions count toward the same annual cap.
Things can change quickly when the IRS adjusts for inflation — I’ll update this page when there are new announcements. Subscribe here to get notified.
Employer Match and Combined Limits
Employer matching contributions do not count toward your personal $24,500 employee limit — but they do count toward the overall combined limit. For 2026, the combined ceiling (employee + employer contributions) is $72,000, or 100% of your compensation if that’s lower.
Most employers match somewhere between 3% and 6% of employee contributions, so very few people actually approach the combined cap. Still, if you’re self-employed with a solo 401(k), you’re both the employee and employer — which makes the $72,000 limit very relevant.
For what it’s worth, I always make sure I’m contributing at least enough to capture the full employer match before directing savings anywhere else. It’s the closest thing to a guaranteed return you’ll find — and it’s the first thing I’d look at if you’re trying to decide where to start.
Keep in mind that employer contributions often come with a vesting schedule. Your company may match your contributions immediately, or they may require 2–4 years of service before that money is fully yours.
Catch-Up Contributions (Age 50 and Over)
If you’re 50 or older by December 31, 2026, you can make catch-up contributions on top of the standard limit. For 2026, the catch-up amount is $8,000, up from $7,500 in 2025. That brings your total to $32,500.
Catch-up contributions are not subject to the same annual non-discrimination testing rules that apply to regular deferrals. And unlike regular contributions, they’re available the full calendar year you turn 50 — you don’t have to wait until your birthday.
Super Catch-Up for Ages 60–63 (SECURE 2.0)
A question I see a lot in the comments: “I just turned 61 — can I really put in $35,750 this year?” Yes, if your plan supports it. Here’s exactly how it works.
The SECURE 2.0 Act introduced a higher catch-up limit for workers specifically aged 60, 61, 62, or 63. For 2026, this super catch-up limit is $11,250 — unchanged from 2025. Combined with the $24,500 employee limit, workers in this age range can contribute up to $35,750 to their 401(k) this year.
This is a significant benefit for workers in the final sprint toward retirement. If you’re in this window and haven’t maxed out your contributions, it’s worth talking to a payroll or HR contact to adjust your withholding now.
Compensation Limits and HCE Thresholds
Not all of your salary counts for contribution-calculation purposes. The IRS caps the amount of compensation that can be considered, and that cap increased in 2026:
| Year | Annual Comp Limit | Highly Compensated Employee (HCE) Threshold |
|---|---|---|
| 2026 | $360,000 | $160,000 |
| 2025 | $350,000 | $160,000 |
| 2024 | $345,000 | $155,000 |
| 2023 | $330,000 | $150,000 |
| 2022 | $305,000 | $135,000 |
If you’re classified as a highly compensated employee (earned over $160,000 in the prior year), your 401(k) deferral rate may be restricted based on how much lower-paid employees contribute. This is the ADP/ACP non-discrimination test — it exists to prevent plans from disproportionately favoring highly paid workers.
Real-World Examples
Example 1 — The super catch-up in practice: Sarah is 62 and earns $120,000. She’s been contributing $20,000 to her 401(k) all year and is wondering if she should bump it up. Under the 2026 rules, she can contribute up to $35,750 total ($24,500 employee max + $11,250 super catch-up). She bumps her contributions to max them out before year-end. Her employer matches 4% of salary — $4,800 — which doesn’t count against her $35,750 employee limit but adds to the combined $72,000 cap. Total going in: $40,550. Not bad for a final sprint year.
Example 2 — Hitting the HCE wall mid-year: Mark earned $175,000 last year, making him a highly compensated employee in 2026. His company’s lower-paid workers are contributing an average of 5% of their salary. Under ADP testing rules, Mark’s deferral rate may be capped close to that same percentage — limiting him to roughly $8,750 rather than the full $24,500. In March, his plan administrator notifies him he’s over the limit. Mark gets an excess contribution refund, which is then taxable. The lesson: if you’re an HCE, check with HR early in the year about what your effective cap will be before you set your deferral rate.
401(k) Automatic Enrollment
Under legislation passed in recent years, employers can now automatically enroll eligible employees in 401(k) plans at a default contribution rate — typically 3% to 6% of salary. You can always opt out or adjust your rate, but auto-enrollment has been shown to meaningfully improve retirement savings rates, especially for younger workers who might otherwise procrastinate.
If your employer does an enrollment sweep at the start of the year, it may also nudge participants who are below the sweep rate to contribute more — which also makes you eligible for more employer matching (free money).
Common Issues to Watch Out For
I get a lot of questions about 401(k) edge cases — here are the ones that trip people up most often.
Over-contributing when switching jobs. If you leave a job mid-year and join a new employer, both 401(k) plans share the same $24,500 annual cap. Your new employer’s plan doesn’t know what you contributed to your old one. It’s on you to track this. If you go over, you must withdraw the excess plus earnings before April 15 of the following year — otherwise the money gets taxed twice.
Leaving employer match on the table. This is the one I see come up in reader emails all the time. If your employer matches 4% of your salary and you’re contributing 2%, you’re giving away free money. Always contribute at least enough to capture the full match before directing savings elsewhere.
Not accounting for the vesting schedule. Your contributions are always yours. But employer matching contributions often vest over 2–4 years. If you leave after 18 months, you might walk away with only a fraction of what your employer put in — or none of it. Worth checking your plan documents before making any job change.
Traditional vs Roth 401(k) — the choice most people ignore. Many plans offer both. The traditional version reduces your taxable income now; the Roth version means tax-free withdrawals in retirement. If you expect your tax rate to be higher in retirement than it is today, Roth usually wins. I tend to think younger workers in lower tax brackets benefit most from the Roth option — but it’s worth running the numbers for your own situation.
Auto-enrollment at a rate that’s too low. If your employer auto-enrolled you at 3%, you might assume you’re set. But 3% often won’t get you to a comfortable retirement, and you may be missing out on additional matching. Log in and check your deferral rate — it takes two minutes and could matter a lot over 20 years.
