Retirement · explainer

2026 401(k) Contribution Limits: What Changed

Rules current as of: 2026-05-03

2026 401(k) Contribution Limits: What Changed

The 2026 limit is $24,500. Up $1,000 from 2025. The IRS published the figures in Notice 2025-67 alongside the rest of the annual retirement plan adjustments — including a higher catch-up contribution and a new mandate for high earners that takes effect this year.

If you’re already maxing out, your annual cap rose. If you’re not, the new ceiling matters for next year’s planning. Here’s what changed and what it means for each contribution category.

The 2026 numbers

Category20252026
Standard 401(k) limit$23,500$24,500
Age 50+ catch-up$7,500$8,000
Total for ages 50-59$31,000$32,500
Super catch-up (ages 60-63)$11,250$11,250
Total for ages 60-63$34,750$35,750
Combined limit (employee + employer)$70,000$72,000
Compensation limit$350,000$360,000

These figures cover 401(k), 403(b), governmental 457(b), and the federal Thrift Savings Plan. SIMPLE IRA and SIMPLE 401(k) limits sit on a separate schedule and are lower.

Standard limit: $24,500

If you’re under 50 with no special status, this is your cap. It applies across all 401(k)-style plans combined. Two jobs, two 401(k)s — your combined contributions can’t exceed $24,500.

Spread across 26 biweekly paychecks, the per-paycheck contribution to max out is $942.31. For 24 semimonthly paychecks: $1,020.83. For 12 monthly paychecks: $2,041.67.

Front-load if you can. Hitting the cap early gives those dollars more time in market. The catch: if your employer matches per-paycheck, front-loading too aggressively may cause you to miss matches in the back half of the year. Confirm with HR whether your plan offers a “true-up” — most do, but not all.

Catch-up contribution: $8,000 for age 50+

The catch-up rises by $500 to $8,000. Available to anyone age 50 or older at any point during the year. You don’t need to wait until your birthday — turning 50 in December 2026 makes you eligible for the full year.

Combined with the standard limit, the total allowed for ages 50-59 is $32,500.

Super catch-up: $11,250 for ages 60-63 only

A SECURE 2.0 provision created a higher catch-up for the four-year window of ages 60, 61, 62, and 63. The amount is unchanged at $11,250 for 2026.

This is window-only. At age 64, the worker drops back to the standard age-50+ catch-up of $8,000. The four-year window is meant to amplify retirement savings in the final pre-retirement stretch. Total allowed for ages 60-63 in 2026: $35,750.

The new Roth catch-up mandate

This is the biggest 2026 change for high earners. Under SECURE 2.0, employees whose Social Security wages from the previous year exceeded $145,000 must make all catch-up contributions as Roth (after-tax) — not pre-tax.

For 2026, the IRS adjusted the threshold up to $150,000, indexed going forward.

Practical effect:

  • Earned $145,000 or more in 2025? Your 2026 catch-up contributions ($8,000 if 50-59, $11,250 if 60-63) must go into the Roth side of your 401(k).
  • Earned under $145,000 in 2025? You can still choose pre-tax for the catch-up.
  • Plan doesn’t offer a Roth 401(k)? You can’t make catch-up contributions at all in 2026. The plan must add Roth or you’re locked out of catch-up.

The IRS deferred enforcement. Notices 2023-62 and 2024-2 delayed the original 2024 effective date through 2025. 2026 is the first year of full enforcement.

Employer match still adds on top

The $24,500 (or $32,500, or $35,750) is your employee limit. Employer contributions sit separately. The combined cap on employee + employer + after-tax contributions for 2026 is $72,000 — or $80,000 if you’re 50+ and add the catch-up, or $83,250 for ages 60-63 with the super catch-up.

This combined cap is what enables the mega backdoor Roth strategy: contribute up to the full $72,000 by adding after-tax (non-Roth) contributions, then convert those to Roth. Only viable if your plan permits after-tax contributions and in-service Roth conversions. Check your plan documents.

What it means at each income level

The income at which the limit becomes the binding constraint:

  • Under $50,000: limit doesn’t bind unless you’re contributing 50%+ of pay. Focus on hitting the employer match first.
  • $50,000 to $150,000: at 16-50% deferral, you’ll hit the cap. Consider front-loading if your employer offers a true-up.
  • $150,000+: you’ll likely hit the cap mid-year. Schedule contributions to coincide with employer match deposits, or rely on the true-up.
  • $350,000+: the new $360,000 compensation limit caps the wages your match can be calculated on. Above $360,000, the percentage-based match plateaus.

To project how the 2026 limit affects your retirement balance over 20+ years, run the numbers through the 401(k) calculator or compare scenarios with the 401(k) retirement planner. The compounding difference between maxing $24,500 versus $20,000 over 25 years at 7% is roughly $284,000 in future dollars.

For workers weighing pre-tax versus Roth allocation, the Roth vs traditional 401(k) breakdown walks through the bracket math.

Update your contribution percentage in January. The new ceiling is only useful if your payroll system reflects it.

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