2026 401(k) Contribution Limits — Complete Guide

Updated July 2026 · Sources: IRS.gov, IRS Notice 2025-XX

Elective Deferral Limit (Employee Contributions)

For 2026, the maximum amount you can contribute to your 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan (TSP) is $24,500 if you are under age 50. This is an increase from the 2025 limit of $23,500, reflecting the IRS's annual cost-of-living adjustment.

This limit applies to your elective deferrals—the money you choose to have withheld from your paycheck. It does not include employer matching contributions, non-elective employer contributions, or allocations of forfeitures.

Catch-Up Contributions (Age 50 and Over)

If you are age 50 or older by the end of the calendar year, you can make additional catch-up contributions of up to $8,000 in 2026. This brings your total elective deferral limit to $32,500.

The catch-up provision is designed to help workers who are behind on retirement savings accelerate their contributions in the years leading up to retirement. You do not need to be "behind" to use catch-up contributions—anyone age 50+ is eligible.

Age	Elective Limit	Catch-Up	Total
Under 50	$24,500	$0	$24,500
50–59	$24,500	$8,000	$32,500
60+	$24,500	$8,000	$32,500

Annual Addition Limit (Section 415 Limit)

The total amount that can be contributed to your 401(k) account in 2026—including your elective deferrals, employer matching, employer non-elective contributions, and forfeiture allocations—is $70,000 (or 100% of your compensation, whichever is less). For those age 50+, this increases to $78,000 with catch-up.

This is often called the "annual addition limit" or "415 limit" after Internal Revenue Code Section 415. It is the absolute ceiling on total contributions to your account in a single year.

Employer Matching Contributions

Employer matching contributions do not count toward your elective deferral limit ($24,500). However, they do count toward the annual addition limit ($70,000).

Common employer match formulas include:

• 100% match up to 3%: Employer matches dollar-for-dollar on first 3% of salary
• 50% match up to 6%: Employer contributes $0.50 per $1.00 on first 6% of salary
• 100% match up to 4%, then 50% up to 6%: Tiered matching structure

At a $75,000 salary with a 4% match, your employer contributes $3,000/year—free money that does not reduce your $24,500 elective limit.

Roth 401(k) vs. Traditional 401(k)

Both Roth and traditional 401(k) contributions count toward the same $24,500 limit. The key difference is when you pay taxes:

Feature	Traditional 401(k)	Roth 401(k)
Contributions	Pre-tax (reduce taxable income)	After-tax (no immediate deduction)
Growth	Tax-deferred	Tax-free
Withdrawals	Taxed as ordinary income	Tax-free (if qualified)
RMDs	Required at 73	Required at 73 (Roth IRA has no RMDs)
2026 Limit	$24,500	$24,500 (combined with traditional)

Starting in 2024 (SECURE 2.0), Roth 401(k) accounts are no longer subject to Required Minimum Distributions (RMDs) during the original owner's lifetime—matching Roth IRA rules.

IRA Contribution Limits (2026)

For reference, the 2026 IRA contribution limits are:

• Under 50: $7,000
• 50 and over: $8,000 (includes $1,000 catch-up)

IRA limits are separate from 401(k) limits—you can max out both in the same year.

How to Maximize Your 2026 Contributions

1. Capture the full employer match first. This is free money with a 50-100% immediate return.
2. Max out your 401(k) to $24,500. If you cannot afford the full amount, increase contributions by 1-2% each year.
3. Max out your IRA to $7,000. Choose Roth or traditional based on your current vs. expected retirement tax bracket.
4. Use catch-up contributions at 50+. The extra $8,000 can significantly boost late-career savings.
5. Consider a Roth conversion ladder. If you have significant pre-tax savings, plan Roth conversions in low-income retirement years.

2026 vs. Previous Years

Year	Under 50 Limit	50+ Catch-Up	50+ Total	Annual Addition
2024	$23,000	$7,500	$30,500	$69,000
2025	$23,500	$7,500	$31,000	$70,000
2026	$24,500	$8,000	$32,500	$70,000