The 401k contribution limits for 2026 have increased, giving employees an opportunity to put more money into their retirement accounts.
The IRS has raised the annual employee contribution limit to $24,500, with additional catch-up contributions available to workers aged 50 and older.
There are also different limits for employer contributions, which means the total amount going into your 401(k) could be considerably higher than what you contribute from your paycheck. However, not everyone will be able to contribute the same amount.
Your age, income, employer's retirement plan and the type of contributions you make can all affect how much you're allowed to save.
Understanding these limits can help you plan your contributions for 2026 and avoid exceeding the amounts permitted by the IRS.
What are the 401k contribution limits for 2026?
For 2026 the IRS has raised the employee 401(k) deferral limit to $24,500 (up from $23,500 in 2025). That limit applies to both traditional and Roth 401(k) deferrals so if you're contributing to both then the total of the two cannot exceed $24,500.
Employees 50 and over can make an additional $8,000 catch-up contribution (bringing the total to $32,500). Those who turn 60, 61, 62 or 63 during 2026 have a higher catch-up limit of $11,250 (so they can contribute up to $35,750).
Employer contributions are a different matter. If your employer is making a match on your contributions or adding to your account through a profit-sharing arrangement, those amounts generally don't count towards your personal $24,500 limit.
The IRS has set a separate combined contribution limit of $72,000 for 2026 (not including catch-up contributions). Your total retirement savings could be much higher depending on how much your employer is contributing and whether you qualify for the catch-up contribution.
If you have more than one 401(k) account through different employers you will also need to be mindful of your deferrals as the employee deferral limit generally applies across all of your plans.
How do catch up contributions affect 401k contribution limits?
Catch-up contributions allow employees aged 50 and over to put additional money into their 401(k) accounts once they've hit the normal annual contribution limit.
In 2026, eligible employees can contribute an additional $8,000 (if their plan allows catch-up contributions). Employees who turn 60 through 63 during the year can contribute an additional $11,250 rather than the $8,000.
That higher limit was introduced by the SECURE 2.0 Act to give people near retirement an opportunity to save more. Catch-up contributions don't count towards the normal $72,000 combined employee and employer contribution limit.
So for example, a 62-year-old who contributes the full $35,750 and has sufficient employer contributions could potentially have $83,250 in total contributions added to their 401(k) during 2026 (assuming their compensation and plan rules permit it).
There is also a new rule that will affect certain higher-income employees from 2026 onwards. If your Social Security wages from the employer who sponsors your plan were in excess of $150,000 in 2025, your catch-up contributions will generally have to be made as Roth contributions.
That means you'll pay taxes on that money before it goes into your retirement account rather than getting the usual upfront tax deduction. Your regular 401(k) contributions can still be pretax if your plan allows that.
The change only relates to the taxation of the qualifying catch-up contributions and not to the amount you're allowed to contribute.
What is the total 401k contribution limit including employer contributions?
The total 401(k) contribution limit for 2026 is $72,000 when employee and employer contributions are combined, excluding any eligible catch-up contributions. This is an increase from the $70,000 limit in 2025.
The $72,000 limit includes your regular salary deferrals, employer matching contributions, profit-sharing contributions and certain other amounts added to your account.
For example, if you're under 50 and contribute the full $24,500 from your salary, there would be another $47,500 available under the combined limit. That doesn't mean your employer is required to contribute the remaining amount.
It simply means the IRS allows that much in total contributions if your compensation and the terms of your retirement plan permit it. The annual limit is also restricted to 100% of your eligible compensation if that amount is lower than $72,000.
For 2026, the maximum compensation that can generally be taken into account when calculating retirement plan contributions is $360,000.
Does your employer match count towards the 401k contribution limit?
Your employer's matching contributions count towards the combined $72,000 limit but not towards your personal $24,500 employee deferral limit.
Suppose you earn $100,000 annually and your employer matches 50% of your contributions on the first 6% of your salary. If you contribute $6,000, your employer would add another $3,000.
You could still contribute more of your own money, up to the applicable employee limit, even though your employer has already contributed to your account.
How much an employer contributes depends on the matching formula in the retirement plan. Some companies match a percentage of your salary while others contribute a fixed amount or provide additional profit-sharing contributions.
Employer contributions may also be subject to a vesting schedule, which determines when you have full ownership of that money.
Can after-tax contributions increase your total 401k savings?
After-tax contributions can allow some employees to contribute more than the regular $24,500 employee deferral limit, but only if their 401(k) plan permits them. These are different from Roth 401(k) salary deferrals and are generally subject to the combined $72,000 limit.
For example, if you contribute $24,500 in regular deferrals and your employer adds $10,000, you could potentially make another $37,500 in voluntary after-tax contributions. However, the plan must offer this option and the contributions must satisfy applicable IRS rules.
Some plans also allow after-tax balances to be converted or rolled over into Roth accounts, a strategy often referred to as a mega backdoor Roth.
Not every employer provides this feature, so you would need to check your plan documents before assuming the additional contribution space is available.
How do traditional and Roth 401k contribution limits compare?
Traditional and Roth 401(k) accounts have the same employee contribution limits for 2026, but the tax treatment of those contributions is different. With a traditional 401(k), you generally contribute money before federal income taxes are calculated, which reduces your taxable income for the year.
You then pay income tax on those contributions and their earnings when you withdraw the money in retirement. A Roth 401(k) works differently because contributions are made with money that has already been subject to income tax.
You don't receive the same upfront tax benefit, but qualified withdrawals in retirement are tax-free, including eligible investment earnings. You can contribute to both types of accounts during the same year if your employer offers them.
For example, you could put $14,500 into a traditional 401(k) and $10,000 into a Roth 401(k), reaching the combined $24,500 limit. Unlike Roth IRAs, Roth 401(k) contributions are not restricted by your income.
The choice between the two accounts generally depends on your current tax situation and how you expect your income to be taxed in retirement.
Who must make Roth catch-up contributions in 2026?
Employees aged 50 or older whose 2025 Social Security wages from the employer sponsoring their 401(k) plan exceeded $150,000 are generally required to make their 2026 catch-up contributions on a Roth basis.
This requirement comes from the SECURE 2.0 Act and is based on wages earned during the previous calendar year rather than the employee's expected income for 2026. It also doesn't depend on household income or whether the employee files taxes jointly with a spouse.
For someone who started working for the sponsoring employer in 2026 and had no wages from that employer in 2025, the Roth catch-up requirement generally wouldn't apply for that year.
Employees who are subject to the requirement can still make their normal contributions on a pretax basis if their plans permit it. The rule only changes the tax treatment of catch-up contributions.
Since different employers may have different payroll arrangements, employees approaching the contribution limit should confirm how their plan handles the required Roth deferrals.
Do 401k contribution limits apply if you have multiple retirement plans?
The annual employee deferral limit generally applies across all of your 401(k) accounts, even if the accounts are maintained by different employers. That means you cannot contribute $24,500 to one employer's plan and another $24,500 to a second employer's plan during 2026.
For example, if you have two jobs and contribute $15,000 to the first employer's 401(k), you would generally have only $9,500 remaining for employee deferrals to the second plan.
The same shared limit generally applies to employee deferrals made to a combination of 401(k) and 403(b) plans. Governmental 457(b) plans are treated differently because they have a separate deferral limit.
Employer contributions can also work differently across plans maintained by unrelated employers, since the combined annual contribution limit may apply separately to those plans. However, plans sponsored by related businesses may have to be considered together.
If you're participating in several workplace retirement plans, keeping track of your contributions is particularly important because one employer may not know how much you've contributed through another.
What happens to your 401k contribution limit when you change jobs?
Changing employers during 2026 does not give you a new $24,500 employee deferral limit. Any contributions made through your previous employer's 401(k) still count towards your annual limit.
For example, if you contributed $18,000 before leaving your previous job, you could generally contribute another $6,500 through your new employer's plan during the same year.
Your new employer's payroll system may not automatically account for the contributions you made earlier, so you should check your previous pay statements before setting up a new contribution amount.
This is especially relevant for employees who change jobs late in the year or receive bonuses that are eligible for retirement plan deferrals.
When is the deadline for making 401k contributions for 2026?
Employees generally need to make their 2026 401(k) salary deferrals through payroll by December 31, 2026. Unlike IRA contributions, which can usually be made until the federal tax filing deadline for the applicable year, regular employee 401(k) deferrals are tied to wages paid during the calendar year.
This means you generally cannot wait until April 2027 and deposit additional money directly into your employer's 401(k) to make up for contributions you missed in 2026.
Employer contributions follow different timing rules. A company may be allowed to make matching or profit-sharing contributions after the calendar year ends, provided it meets the applicable plan requirements and tax deadlines.
Some employers contribute their matching amounts each pay period, while others make contributions later in the year. Employees planning to maximize their 401(k) contributions should review their remaining payroll dates and contribution elections before the final pay period of December.
What happens if you exceed the 401k contribution limit?
If your employee 401(k) contributions exceed the applicable IRS limit, the extra amount is considered an excess deferral and generally needs to be corrected to avoid unfavorable tax consequences.
This can happen when someone contributes to plans through two different employers or when payroll records don't correctly reflect previous contributions. Suppose you're under 50 and contribute $25,500 across two 401(k) plans in 2026.
Since the regular limit is $24,500, you would have an excess deferral of $1,000. The IRS generally requires employees to notify their plan administrator and have the excess amount, adjusted for any earnings, distributed by April 15 of the following year.
For excess deferrals made in 2026, that date is April 15, 2027. The excess pretax contribution is generally taxable for the year in which it was contributed, while any earnings distributed with it are taxed in the year they're received.
If the excess isn't corrected by the deadline, the employee may face double taxation on that amount. Corrective distributions also have their own reporting requirements, so it is worth contacting the plan administrator as soon as an overcontribution is discovered.
Can high-income employees contribute the full 401k limit?
High-income employees can generally contribute up to the IRS annual limit, but some may be restricted by their employer's retirement plan or its nondiscrimination testing requirements.
The IRS requires many traditional 401(k) plans to demonstrate that the benefits provided to highly compensated employees are not disproportionately greater than those provided to other workers. If a plan fails certain tests, contributions made by higher-paid employees may need to be limited or corrected.
Some employers use safe harbor 401(k) plans, which can avoid certain annual nondiscrimination testing requirements when the plans meet the necessary conditions.
For 2026, the IRS highly compensated employee compensation threshold is $160,000, although ownership and other rules can also affect classification. This is separate from the $150,000 prior-year wage threshold used for mandatory Roth catch-up contributions.
As a result, an employee's salary alone doesn't always determine whether they can contribute the maximum amount. The specific retirement plan and its provisions also matter.
How much should you contribute per paycheck to reach the 2026 limit?
To reach the $24,500 employee contribution limit in 2026, you would need to contribute approximately $942.31 per paycheck if you're paid every two weeks and receive 26 paychecks during the year.
If you're paid twice a month, the amount would be approximately $1,020.83 across 24 paychecks. Employees who are paid monthly would need to contribute about $2,041.67 per month.
These calculations assume you're contributing throughout the entire year and have not already made any contributions. If you begin saving later in the year, you would need to divide your remaining contribution allowance by the number of paychecks you have left.
For example, if you've already contributed $10,000 towards the 2026 limit, you would have another $14,500 available for regular employee deferrals. Your employer may also require you to select a percentage of your salary rather than a fixed dollar amount.
In that case, the contribution percentage would depend on your earnings, pay frequency and whether bonuses or commissions are included in eligible compensation.
What happens if you reach your 401k limit before the end of the year?
If you reach your applicable employee contribution limit before the end of 2026, your payroll system will generally need to stop further regular deferrals for that year. However, reaching the limit early can affect the employer match under some retirement plans.
If your employer calculates matching contributions separately for each paycheck, stopping your contributions could mean you receive less matching money during the remaining pay periods.
Some plans offer a year-end true-up contribution to make up for this difference, but others do not. For that reason, employees who want to maximize their contributions should check how their employer calculates the match before deciding to contribute a large percentage of their salary early in the year.
Are 401k contribution limits different for self-employed workers?
Self-employed individuals with a solo 401(k) generally follow the same $24,500 employee deferral limit for 2026, but they may also be able to make contributions in their capacity as the employer.
A solo 401(k), also called a one-participant 401(k), is designed for business owners with no employees other than a spouse. Since the business owner is treated as both the employee and employer for contribution purposes, there may be an opportunity to contribute more than the regular employee deferral limit.
Employer contributions are calculated according to the business structure, eligible compensation and applicable tax rules. The combined annual contribution limit is generally $72,000 for 2026, excluding eligible catch-up contributions.
If you also have a regular job with a separate 401(k), your employee deferrals across the plans must still remain within the applicable shared limit.
However, employer contributions made through an unrelated business may be subject to a separate annual additions limit. The actual contribution amount therefore depends on both the plan and the business's earnings.
Are SIMPLE 401k contribution limits different in 2026?
SIMPLE 401(k) plans have lower employee contribution limits than traditional 401(k) plans. For 2026, the regular employee deferral limit for a SIMPLE 401(k) is $17,000, compared with $24,500 for a traditional or safe harbor 401(k).
Employees aged 50 and older may be able to contribute another $4,000 in catch-up contributions, while eligible employees who turn 60 through 63 during the year have a higher catch-up limit of $5,250.
That means someone aged 62 could potentially contribute $22,250 to a SIMPLE 401(k) during 2026. These plans are generally intended for smaller employers and have their own contribution and employer funding requirements.
Employees should confirm which type of retirement plan their company offers rather than assuming that all plans described as 401(k) accounts follow the same limits.
Can you contribute to an IRA and a 401k in the same year?
You can contribute to an IRA and a 401(k) during the same tax year because the IRS sets separate annual contribution limits for these retirement accounts. For 2026, the IRA contribution limit is $7,500, with an additional $1,100 catch-up allowance for eligible individuals aged 50 and older.
That means an employee under 50 could potentially contribute $24,500 to a 401(k) and another $7,500 to an IRA during 2026, for a combined $32,000 in retirement contributions before any employer matching amounts.
However, IRA eligibility and tax deductions may be affected by income, filing status and participation in an employer-sponsored retirement plan. Roth IRA contributions, for example, are subject to income restrictions that don't apply to Roth 401(k) contributions.
Employees considering both accounts should review the applicable rules to determine how much they can contribute and whether those contributions will qualify for a tax deduction.
What should you know about the 401k contribution limits for 2026?
The 401k contribution limits for 2026 allow most employees to contribute up to $24,500 of their own earnings, with additional contributions available for those aged 50 and older.
However, the maximum allowed by the IRS isn't necessarily the amount every employee should contribute. Your employer's matching policy, the availability of traditional or Roth contributions, your current income and your retirement savings goals all play a part in deciding how much to set aside.
Employees approaching retirement may benefit from the higher catch-up allowances, while those with more than one job need to pay closer attention to the combined employee deferral limit. Higher earners should also understand how the Roth catch-up requirement affects the taxation of their additional contributions.
Before making changes to your contribution elections, it makes sense to check your retirement plan's provisions and review how much you've already contributed during the year.
Doing so can help you make use of the available contribution limits while avoiding excess deferrals or missing out on employer matching contributions.
