401(k) Contribution Limits for 2026: Simple Guide

Planning for retirement means knowing the rules for saving in a 401(k). The IRS just updated the limits for 2026. These changes let you save more due to inflation and rules from the SECURE 2.0 Act. This guide explains the key limits clearly, compares them to past years, and gives tips to save more.

What is a 401(k)?

A 401(k) is an employer-sponsored retirement account. You put in money from your paycheck before taxes (traditional) or after taxes (Roth). The money grows tax-free until you withdraw it in retirement.

Many employers match part of what you contribute — that's free money. You can choose investments like funds or stocks. Limits apply each year to keep things fair.

2026 Contribution Limits

Here are the main numbers for 2026:

• Your contributions (employee deferrals): Up to $24,500. This is $1,000 more than 2025's $23,500.
• Catch-up for age 50+: Extra $8,000, for a total of $32,500.
• Super catch-up for age 60-63: Extra $11,250 instead of $8,000, for a total of $35,750 (if your plan allows it, per SECURE 2.0).
• Total with employer contributions: Up to $72,000 (or $80,000 with standard catch-up, higher for super catch-up).

Note: Starting 2026, if you earned over $150,000 in 2025, catch-up contributions must be Roth (after-tax).

How Limits Compare to Recent Years

Limits rise most years with inflation:

• 2024: $23,000 base + $7,500 catch-up = $30,500 (50+)
• 2025: $23,500 base + $7,500 catch-up ($11,250 for 60-63) = $31,000 ($34,750 for 60-63)
• 2026: $24,500 base + $8,000 catch-up ($11,250 for 60-63) = $32,500 ($35,750 for 60-63)

Total limit (employee + employer):

• 2024: $69,000
• 2025: $70,000
• 2026: $72,000

These increases help you save more over time.

Why Max Out Your 401(k)?

• Reduces your taxes now (traditional) or later (Roth).
• Employer match boosts your savings.
• Money grows without yearly taxes.
• Helps build a secure retirement.

For example, maxing $24,500 yearly can grow a lot with compound interest.

Tips to Reach the Max in 2026

• Increase your contribution percentage slowly.
• Use bonuses or raises to add more.
• Set automatic increases each year.
• Track your progress — tools like spreadsheets from Spreadsheetshub.com can help model your savings and see growth scenarios.

Avoid early withdrawals to prevent penalties.

Traditional vs. Roth 401(k)

Learn more about Roth 401(k) at NerdWallet.

• Traditional: Lower taxes now, pay later.
• Roth: Pay taxes now, withdrawals tax-free.

Mix both for flexibility. In 2026, high earners must use Roth for catch-ups.

Other Limits to Know

• IRA limits: $7,500 base + $1,100 catch-up (50+).

Check with your plan for details.

More Resources

• Fidelity 401(k) Guide
• Vanguard Retirement Data
• CNBC on 2026 Changes
• Morningstar Analysis
• Custom planning templates at Spreadsheetshub.com