401(k) Contribution Limits 2026

For 2026 the employee elective deferral limit for 401(k), 403(b), and most 457 plans is $24,500. The standard catch-up contribution for age 50 and older is $8,000. SECURE 2.0 also provides a higher catch-up for ages 60–63 of $11,250 when your plan adopts it—use the plan’s summary to confirm which catch-up applies.

Those limits are for elective deferrals. Employer matches and nonelective contributions use a separate overall annual additions limit under Section 415. Hitting the employee deferral cap does not always mean you are done saving in the plan if after-tax or mega backdoor features exist.

Traditional vs Roth deferrals

Traditional elective deferrals reduce current Box 1 wages and AGI. Roth 401(k) deferrals do not reduce current taxable wages, but qualified withdrawals can be tax-free later. The dollar limit is shared: traditional plus Roth deferrals combined cannot exceed $24,500 (plus catch-up).

From a paycheck view, a traditional deferral lowers federal income-tax withholding need and often FICA-taxable wages for the employee share only when the contribution is pre-tax under the plan’s rules—confirm with payroll. The annual tax return still cares about AGI for credits and IRMAA two years out.

How to use the room

Divide $24,500 by remaining pay periods if you start late. Many people set a percent of salary in January and forget to raise it after a mid-year increase, leaving unused deferral room. Conversely, front-loading too aggressively can hit the limit in October and stop deferrals—and sometimes stop the match—unless the plan true-ups.

Self-employed filers with a solo 401(k) have employee deferral limits plus employer profit-sharing capacity. The math differs from a W-2-only plan; use a dedicated solo 401(k) / SEP worksheet rather than copying a corporate deferral percentage.

IRA limits are separate. For 2026 the IRA contribution limit is $7,500 under the retirement dataset on this site, with its own catch-up rules. You can often fund both a 401(k) and an IRA in the same year, subject to MAGI deductibility or Roth eligibility tests.

Run the 401(k) calculator with 2026 selected to see deferral impact on take-home pay, then confirm the live IRS limit notices and your plan document before changing elections.