For 2026, the IRS 401(k) employee deferral limit is $24,500. People age 50 or older can add a $8,000 catch-up contribution (a total of $32,500), and those aged 60 through 63 can add $11,250 instead (a total of $35,750). The overall limit on all contributions, including employer money, is $72,000.
What are the 401(k) limits for 2026?
| Limit | 2025 | 2026 |
|---|---|---|
| Employee deferral limit (401(k), 403(b), governmental 457, TSP) | $23,500 | $24,500 |
| Catch-up, age 50 and over | $7,500 | $8,000 |
| Catch-up, ages 60–63 | — | $11,250 |
| Maximum employee contribution, age 50–59 | — | $32,500 |
| Maximum employee contribution, ages 60–63 | — | $35,750 |
| Total annual additions (employee + employer) | — | $72,000 |
| Total with catch-up / with ages 60–63 catch-up | — | $80,000 / $83,250 |
| Compensation limit used for plan contributions | — | $360,000 |
| SIMPLE 401(k) or SIMPLE IRA deferral | $16,500 | $17,000 |
Dashes mark figures not covered here. The Roth IRA contribution limits guide lists the matching IRA figures. All 2026 numbers come from the IRS announcement of the cost-of-living adjustments and the IRS retirement-topics pages.
How does the catch-up contribution work?
A catch-up contribution is an extra amount allowed above the normal limit. Eligibility depends on age at the end of the calendar year: anyone who is 50 or older by December 31 can make it, provided the plan permits catch-ups.
- Age 50 and over: up to $8,000 in 2026.
- Ages 60, 61, 62 or 63: up to $11,250 in place of the $8,000 (SECURE 2.0 rule).
- SIMPLE plans: the limit is $17,000, with a $4,000 catch-up, or $5,250 for ages 60–63.
What is the Roth catch-up requirement?
Starting in 2026, participants in plans with Roth features whose wages from the plan sponsor exceeded $150,000 in the prior year must make catch-up contributions on a Roth basis (after-tax), not pre-tax. The test uses the prior year's wages, so it is based on 2025 pay for 2026 catch-ups.
How does the $72,000 total limit work?
The total annual additions limit caps everything that goes into one account in a year: employee deferrals (excluding catch-up), employer matching contributions, employer nonelective contributions and forfeiture allocations. The cap is the lesser of $72,000 or 100% of compensation. Catch-up contributions sit on top: $80,000 in total, or up to $83,250 at ages 60–63.
Worked example: age 35, $90,000 salary
Defer the full $24,500: that is 24,500 ÷ 90,000 = 27.2% of pay, or $2,041.67 per month. With an employer match of 4% of salary ($3,600), total additions are $28,100, well under $72,000. Over 26 pay periods the deferral is about $942.31 per paycheck.
Worked example: age 61
An employee aged 61 can defer $24,500 plus the $11,250 catch-up: $35,750. A colleague aged 52 is limited to $24,500 + $8,000 = $32,500.
Does the compensation limit affect the match?
Plan contributions are calculated on pay up to $360,000 in 2026. Take a hypothetical plan that matches 50% of the first 6% of pay. At $400,000 of salary, only $360,000 counts, so the match is 0.06 × 360,000 × 0.50 = $10,800, not the $12,000 that the full salary would suggest. Matching formulas differ by plan; this one is an illustration, not a typical rule.
401(k) limits vs IRA limits
The 401(k) and the IRA are separate limits. The 2026 IRA limit is $7,500, with a $1,100 catch-up for age 50 and over. Whether the IRA contribution is deductible or allowed for Roth purposes depends on income; see the Roth IRA income limits guide. Withdrawals later face required minimums covered in the RMD table.
What can go wrong?
- Plans may set lower limits than the IRS maximum, so the plan document is the final word.
- Catch-up contributions require the plan to offer them.
- A plan administrator or tax professional can confirm the figures that apply to a specific situation.
This guide is for education only and is not financial or tax advice.