2026-2027 401(k), 403(b), and TSP Contribution Limits — Employee, Employer, and Catch-Up Amounts

The IRS has released its latest individual employee contribution annual limits for those participating in employer sponsored retirement programs covering 401(k), 403(b), 457 and Government Thrift Savings (TSP) plans. Changes are shown in the table below.

The contribution limits are indexed to inflation and as a result are adjusted annually by the IRS based on predefined inflation considerations. See details and additional explanations below the table.

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Maximum Contribution Limit

Your maximum contribution limit is the combined total maximum contribution that you can make each year to ALL employer sponsored retirement plans in which you participate, including standard pre-tax plans and post tax Roth plans — and is the lower of:

(1) the maximum percentage contribution limit allowed under each of your employers’ plans or; (2) the dollar limits shown in the table above.

For example, if your employer’s 401k plan allows you to contribute up to a maximum of 10% of your salary, and you earn $50,000, your maximum contribution limit is $5,000, not the annual contribution limit that applies only to higher-paid employees.

Maximum Employer Contributions

Matching employer contributions towards an employee’s retirement plan are NOT counted towards an individual employee’s annual contribution limit (elective deferrals).

Even if you contribute the maximum amount each year, your employer’s matching contributions are in addition to these 401k limits.

Your employer’s 401K maximum contribution limit is shown in the table above. Though most employers rarely give anywhere near the maximum, with most generally matching 3% to 6% of employee contributions.

Catch-up and Super Catch-up contributions

If you are age 50 or over by the end of the calendar year, you are permitted to make additional, “catch-up”, elective deferral contributions.

These catch-up contributions are not subject to the annual general limits that apply to employer sponsored plans shown in the table above.

The catch-up contribution you can make for a year cannot exceed the lesser of the annual catch-up contribution limit, or the excess of your compensation over the elective deferrals that are not catch-up contributions.

From 2025 onwards, there is now a “super” catch-up contribution, introduced under the SECURE Act 2.0, that allows individuals aged 60 to 63 to contribute more to 401(k), 403(b), 457, or TSP plans beyond the standard catch-up limit (see table above) for those aged 50 and older. For 2026, the super catch-up is $11,250 total (versus the standard $8,000 catch-up for other age-50+ workers).

For those who are self employed see the latest SEP-IRA plan changes.

Roth Catch-Up Mandate for High Earners (2026)

Here’s a change that catches a lot of people off guard: starting January 1, 2026, if you’re 50 or older and earned more than $150,000 in FICA wages (Box 3 of your W-2) from your current employer in 2025, your catch-up contributions must be made as Roth (after-tax) — you can no longer direct that portion pre-tax.

This comes from SECURE 2.0 Section 603. Treasury and the IRS issued final regulations on September 16, 2025. 2026 is treated as a good-faith compliance year; full compliance is required starting with the plan year beginning January 1, 2027.

A few things worth knowing:

• The threshold is $150,000 in prior-year FICA wages from your current employer — it started at $145,000 when SECURE 2.0 was written and is now indexed for inflation.
• It only affects the catch-up portion. Your regular contributions, up to the standard $24,500 limit, can still be pre-tax or Roth, your choice.
• It applies to 401(k), 403(b), and governmental 457(b) plans. It does not apply to IRA catch-up contributions — see the Traditional vs Roth IRA page for how IRA catch-up rules work.
• If your plan doesn’t offer a Roth option, this gets serious. You won’t be able to make catch-up contributions at all — not pre-tax, not Roth — until your plan sponsor amends the plan to add a Roth feature.

Example: Maria is 58 and earned $162,000 in FICA wages in 2025. In 2026, she can still contribute up to $24,500 to her 401(k) in pre-tax or Roth, her choice. But her $8,000 catch-up contribution has to go into the Roth portion of her plan — she can’t route it pre-tax anymore, even though she’d normally prefer the immediate deduction.

If you’re near or over $150,000 and turning 50 this year, it’s worth checking with your HR or plan administrator now, so you’re not surprised when catch-up dollars start routing to Roth automatically.

Additional Compensation limits and Constraints

In addition to the limit on elective deferrals shown in the table above, annual contributions to all of your accounts may not exceed 100% of your compensation.

Further, there are IRS specified compensation limits for Highly Compensated Employees (HCE) that need to be taken into account when determining employer and employee contributions.

A Highly Compensated Employee (HCE), as defined by the IRS, includes individuals earning more than the limits shown below in the preceding year or owning more than 5% of the business at any time during the current or prior year.

These restrictions arise due to non-discrimination testing, which ensures 401(k) plans benefit all employees equitably. If HCEs contribute at disproportionately higher rates than non-HCEs, the plan may fail the tests, requiring corrective actions such as refunding excess contributions.