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2026 401(k) Contribution Limits
| Limit Type | 2024 | 2025 | 2026 | Change |
|---|---|---|---|---|
| Employee elective deferral | $23,000 | $23,500 | $24,500 | +$1,000 |
| Catch-up (age 50+) | $7,500 | $7,500 | $8,000 | +$500 |
| SECURE 2.0 super catch-up (60–63) | N/A | $11,250 | $11,250 | No change |
| Combined employee + employer | $69,000 | $70,000 | $72,000 | +$2,000 |
| Traditional/Roth IRA | $7,000 | $7,000 | $7,500 | +$500 |
| IRA catch-up (age 50+) | $1,000 | $1,000 | $1,100 | +$100 |
Why did most limits go up, but not the super catch-up? The IRS adjusts the 401(k) employee deferral limit for inflation in increments of $500. This year the adjustment was large enough to raise it by $1,000, from $23,500 to $24,500, and the regular catch-up rose by $500. The $11,250 super catch-up for ages 60 to 63 did not change because the law ties it to the 2024 catch-up amount instead of adjusting it every year. The IRA limit and IRA catch-up also rose.
How 401(k) Contributions Reduce Your 2026 Tax Bill
Traditional 401(k) contributions are made pre-tax and directly reduce your taxable income in the year of contribution. This reduces both income tax and potentially the phase-out thresholds for other benefits.
Example: Single Filer, $90,000 Salary, $24,500 Traditional 401(k)
Always capture the full employer match first. If your employer matches contributions, contribute at least enough to get the full match before deciding between traditional and Roth. An employer match is free money and does not count toward your $24,500 personal limit.
Traditional vs. Roth 401(k) in 2026
The $24,500 limit applies to both traditional and Roth 401(k) contributions combined. You can split between the two in any proportion.
| Feature | Traditional 401(k) | Roth 401(k) |
|---|---|---|
| Tax on contributions | Pre-tax (reduces current income) | After-tax (no current deduction) |
| Tax on qualified withdrawals | Fully taxable as ordinary income | Tax-free |
| RMDs at age 73 | Required | Not required (post-SECURE 2.0) |
| Best if | In higher bracket now than retirement | In lower bracket now than retirement |
Higher earners have one extra rule in 2026. If your Social Security wages from your employer in 2025 were more than $150,000, your catch-up contributions must generally go into a Roth account. That includes the 60 to 63 super catch-up. Your plan needs a Roth option for this to work, so check with your plan administrator.
Frequently Asked Questions
Disclaimer: The 2026 401(k) employee elective deferral limit ($24,500) and the combined employee + employer limit ($72,000) are the official figures from IRS Notice 2025-67. This page is for educational planning purposes only and is not tax, legal, or financial advice. Consult a qualified tax professional or your plan administrator for advice specific to your situation.