The 2026 limits at a glance
A 401(k) is a workplace retirement plan that lets you save pre-tax (traditional) or after-tax (Roth) dollars, often with an employer match on top. Each year the IRS sets a ceiling on how much you can put in. The key number for 2026 is the elective deferral limit — the maximum you can contribute from your own paycheck — which rose from $23,500 in 2025 to $24,500 in 2026[1].
The same $24,500 limit applies to 403(b) plans, most governmental 457 plans, and the federal Thrift Savings Plan[1]. Below is the full picture of the limits that changed for 2026, with 2025 alongside for comparison.
| Limit | 2026 | 2025 |
|---|---|---|
| Employee elective deferral | $24,500 | $23,500 |
| Catch-up (age 50+) | $8,000 | $7,500 |
| Super catch-up (ages 60–63) | $11,250 | $11,250 |
| IRA contribution limit | $7,500 | $7,000 |
Catch-up contributions at 50 and 60–63
Once you turn 50, the IRS lets you contribute extra to make up for years you may not have saved. The catch-up for most plans is $8,000 in 2026, up from $7,500 in 2025 — so a worker 50 or older can put away up to $32,500 ($24,500 + $8,000)[1].
There's a second, higher catch-up for the years just before retirement. Under the SECURE 2.0 Act, employees ages 60, 61, 62, and 63 get a larger catch-up of $11,250 in 2026 instead of the standard $8,000[1]. That brings their maximum deferral to $35,750. It's a narrow window, but it's the most generous savings opportunity the plan offers — worth taking if you're behind on retirement.
Note that the higher catch-up only applies in the years you are actually 60 through 63, and the same rule applies to 403(b), most 457 plans, and the TSP[1].
How the total limit and employer match fit in
Your own deferral isn't the only money that can land in the account. Employer contributions — matches and profit-sharing — count toward a separate, higher ceiling called the annual additions limit. For 2026 that total is $72,000 for employees under 50, combining your deferrals, employer contributions, and any forfeitures[2].
With the standard catch-up, the total rises to $80,000, and with the 60–63 super catch-up it reaches $83,250[2]. There's also a cap on how much of your salary can be considered for contribution purposes: $360,000 in 2026[2]. In practice, most people never hit these ceilings — but the match matters, because it's free money that grows tax-deferred until you withdraw.
One practical point: an employer match usually doesn't count against your personal $24,500 deferral, but it does count toward the $72,000 total. So maxing your own deferral doesn't forfeit the match — you can take both up to the combined limit.
401(k) vs IRA: the $7,500 comparison
If you don't have a workplace plan — or you've maxed it out — an IRA is the other main lever. The 2026 IRA contribution limit rose to $7,500, up from $7,000, with an IRA catch-up for those 50 and older of $1,100[1]. The 401(k) allows far more ($24,500 vs $7,500), which is why the standard advice is to at least contribute enough to capture your full employer match before turning to an IRA.
Order of operations most planners suggest: contribute enough to get the full match first, then decide between a Roth IRA and more 401(k) based on your tax bracket. Both accounts share the same trade-off — traditional contributions lower this year's taxable income, while Roth contributions grow tax-free for retirement.
FAQ
Can I contribute to both a 401(k) and an IRA?
Yes. The limits are separate: up to $24,500 to a 401(k) (plus catch-up if eligible) and up to $7,500 to an IRA for 2026. Whether your IRA contribution is deductible depends on your income and whether you're covered by a workplace plan.
Does the employer match count toward my $24,500?
No. The match counts toward the higher annual additions limit of $72,000 (2026), not your personal deferral limit. That means you can max your own $24,500 and still receive the match on top.
What is the 60–63 "super catch-up"?
Under SECURE 2.0, employees ages 60, 61, 62, and 63 can contribute an extra $11,250 in 2026 instead of the standard $8,000 catch-up — a total of $35,750 for those years.