2026 Employee 401(k) Contribution Limit
Most employees can defer up to $24,500 into eligible 401(k) plans in 2026, subject to compensation, plan rules, and other applicable statutory restrictions. This elective-deferral limit is governed by Section 402(g) of the Internal Revenue Code and increased by $1,000 from the 2025 limit of $23,500.
This limit applies to all employee elective deferrals made during the 2026 calendar year, regardless of whether you make pre-tax traditional contributions or after-tax designated Roth contributions. Employer contributions do not consume or reduce your personal $24,500 elective deferral limit.
Is the Roth 401(k) Limit Separate From the Traditional 401(k) Limit?
No. Traditional pre-tax and designated Roth 401(k) elective deferrals generally share the same single $24,500 employee elective-deferral limit for 2026.
You can split your elective contributions between traditional and Roth accounts in any proportion you choose, but their combined sum cannot exceed $24,500 (or $32,500 / $35,750 if you qualify for catch-up contributions).
Example of Split Contribution:
• Pre-tax Traditional 401(k) Deferral: $14,500
• Designated Roth 401(k) Deferral: $10,000
• Total Elective Deferrals: $24,500 (reaches 100% of the 2026 individual limit)
You cannot contribute $24,500 to a traditional 401(k) and an additional $24,500 to a Roth 401(k) within the same tax year.
2026 401(k) Catch-Up Contribution Limit
Eligible participants age 50 or older by the end of 2026 may generally make an additional $8,000 catch-up contribution if their employer's plan permits it. This is up $500 from the $7,500 catch-up limit in 2025.
When combined with the base elective deferral limit, an eligible employee aged 50 through 59 (or 64 and older) can contribute up to:
$24,500 (Base Deferral) + $8,000 (Catch-Up) = $32,500 Total Potential Employee Contribution
To qualify, you only need to turn age 50 on or before December 31, 2026. Even if your 50th birthday falls on the final day of December, you are legally eligible to contribute the full $8,000 catch-up for the entire calendar year. Keep in mind that your workplace plan must explicitly permit catch-up contributions.
Higher 401(k) Catch-Up Limit for Ages 60–63 (SECURE 2.0)
For 2026, eligible participants who turn 60, 61, 62, or 63 during the calendar year have a higher catch-up limit of $11,250 instead of the standard $8,000 catch-up under the SECURE 2.0 Act.
This allows eligible workers in their early 60s to contribute a combined employee total of:
$24,500 (Base Deferral) + $11,250 (Enhanced Catch-Up) = $35,750 Total Employee Contribution
What happens at age 64?
At age 64, the special SECURE 2.0 higher catch-up no longer applies. The participant generally returns to the standard age-50+ catch-up limit, which is $8,000 for 2026 ($32,500 total). The statutory enhancement is exclusively restricted to participants attaining ages 60, 61, 62, and 63.
2026 Roth Catch-Up Requirement (Prior-Year FICA Wage Threshold)
Beginning in 2026, certain participants who make catch-up contributions may be required to make those catch-up contributions on a Roth basis. For 2026 contributions, the rule generally applies when the participant's 2025 FICA wages from the employer sponsoring the plan exceeded $150,000.
This rule applies specifically to catch-up contributions and does not mean all regular 401(k) contributions must be Roth. The $150,000 figure is a prior-year wage threshold used to determine whether the Roth catch-up requirement applies; it is not a 401(k) contribution limit. Plan implementation and individual circumstances can vary.
- Prior-Year Wage Test (2025 FICA Wages): The $150,000 threshold is not based on your 2026 salary. It is strictly evaluated against your relevant prior-year (2025) Medicare/FICA wages from the specific employer sponsoring the plan, not total household income or spousal earnings.
- Applies Exclusively to Catch-Up Contributions: If you are subject to the requirement, your regular employee elective deferrals (up to $24,500 in 2026) can still be contributed on a pre-tax traditional basis. Only your catch-up contributions ($8,000 standard or $11,250 for ages 60–63) must be designated as Roth.
- Participants Earning $150,000 or Less: Participants earning $150,000 or less in 2025 FICA wages retain the choice to make catch-up contributions on either a pre-tax traditional or Roth basis (if permitted by the plan).
- Statutory Authority & Administrative Guidance: Established under Section 603 of the SECURE 2.0 Act (codified at IRC § 414(v)(7)) and implemented following official IRS administrative transition guidance (IRS Notice 2023-62).
Plan administration, payroll systems, and individual tax implications vary. Consult your benefits coordinator, plan administrator, or CPA regarding how your plan administers catch-up elections.
Do Employer Contributions Count Toward the $24,500 Limit?
No. Employer matching contributions, profit-sharing allocations, and company nonelective contributions do not reduce or count against your personal $24,500 elective deferral limit.
You can defer the full $24,500 out of your own paycheck, and any matching dollars provided by your employer are deposited into your account in addition to that amount. Both your contributions and your employer's contributions count toward the broader defined-contribution annual additions limit under IRC Section 415(c), which is $72,000 for 2026.
To see how much your company will deposit under your plan's specific matching formula:
What Is the $72,000 401(k) Limit for 2026?
The $72,000 limit is the 2026 base statutory limit on total annual additions made to a defined contribution plan account under IRC Section 415(c). It is not the amount an employee can personally defer from their paycheck.
Annual additions generally comprise:
- Employee elective deferrals (pre-tax and Roth, up to $24,500)
- Employer matching contributions
- Employer nonelective and profit-sharing contributions
- Employee voluntary after-tax contributions
- Forfeiture allocations where applicable
Crucially, qualified catch-up contributions under IRC 414(v) are excluded from the base $72,000 limit. Consequently, the actual maximum additions possible across all sources can reach:
- Participants under age 50: $72,000 maximum
- Participants age 50–59 & 64+: $72,000 + $8,000 catch-up = $80,000
- Participants age 60–63: $72,000 + $11,250 catch-up = $83,250
The annual additions limit is also subject to 100% of the employee's eligible compensation, if less than $72,000.
Do After-Tax 401(k) Contributions Count Toward the $72,000 Limit?
Yes. Employee after-tax contributions (distinct from designated Roth deferrals) count directly against the IRC 415(c) annual-additions limit.
In plans that permit after-tax contributions, employees who have already maxed out their $24,500 elective deferral and received their employer match can contribute additional after-tax dollars up to the remaining space beneath the $72,000 cap. This strategy forms the mathematical engine behind the "Mega-Backdoor Roth" rollover.
2026 401(k) Annual Compensation Limit ($360,000)
Under Section 401(a)(17) of the Internal Revenue Code, the maximum annual compensation that a qualified retirement plan can take into account when calculating contributions is $360,000 for 2026, an increase from $350,000 in 2025.
This compensation cap prevents retirement plans from favoring highly compensated employees. For example, if an employer provides a 5% matching or profit-sharing contribution, the maximum salary considered for that calculation is $360,000, yielding a maximum company contribution of $18,000, even if the executive earns $600,000.
What If I Have More Than One 401(k) Plan?
An individual's employee elective-deferral limit applies to the person, not to each separate plan account. For 2026, your total elective deferrals across all 401(k), 403(b), SARSEP, and SIMPLE plans cannot exceed $24,500 (plus eligible catch-ups).
Example: Working for Two Unrelated Employers in 2026:
• Employer A 401(k) Deferral: $15,000
• Employer B 401(k) Deferral: $9,500
• Total Deferrals: $24,500 (Maximum legal elective deferral reached)
However, the IRC 415(c) $72,000 annual additions limit applies separately to each unrelated employer's plan, subject to controlled group and affiliation rules. If you participate in plans of unrelated employers, consult your plan administrator or tax adviser.
Solo 401(k) & SIMPLE 401(k) Clarifications
Solo 401(k) Plans: Self-employed business owners and independent contractors participate as both employee and employer. While the employee elective-deferral limit remains $24,500 (plus catch-ups), the business owner can also make employer nonelective contributions of up to 25% of net self-employment earnings, up to the total $72,000 annual additions limit ($80,000 with age 50+ catch-up).
SIMPLE 401(k) Plans: SIMPLE 401(k) plans are distinct, smaller retirement plans with separate statutory contribution limits established under different code sections. The $24,500 limit detailed on this page applies to traditional and Safe Harbor 401(k) plans, not to SIMPLE 401(k) plans.
2026 401(k) Contribution Examples
| Scenario | Age | Employee Deferral | Employer Contribution | Total Additions |
|---|---|---|---|---|
| Standard Career Professional | 35 | $24,500 (Max) | $6,000 (Match) | $30,500 / $72,000 cap |
| Mid-Career Catch-Up | 55 | $32,500 (Max with $8k) | $8,500 (Match) | $41,000 / $80,000 cap |
| Pre-Retiree Super Catch-Up | 61 | $35,750 (Max with $11.25k) | $10,000 (Match) | $45,750 / $83,250 cap |
| High-Income Mega Additions | 45 | $24,500 (Elective) | $20,000 (Match/Profit) + $27,500 (After-tax) | $72,000 (Maxed 415(c)) |