401k Contribution Limits 2026

2026 401k Contribution Limits Breakdown

Category	2026 Limit	2025 Limit	Change
Employee Elective Deferral	$24,500	$23,500	+$1,000
Catch-Up (Age 50+)	$8,000	$7,500	+$500
Total Employee (Age 50+)	$32,500	$31,000	+$1,500
Total Limit (All Sources)	$70,000	$69,000	+$1,000
Total Limit (Age 50+)	$78,000	$76,500	+$1,500

Who Can Contribute to a 401k?

You can contribute to a 401k if:

• Your employer offers a 401k plan
• You meet your plan's eligibility requirements (typically 21+ years old)
• You have earned income from employment

Note: Unlike Roth IRAs, there are no income limits for 401k contributions.

Catch-Up Contributions Explained

If you're age 50 or older by December 31, 2026, you can contribute an additional $8,000 on top of the standard $24,500 limit.

Example:

Important: You must turn 50 by December 31, 2026 to make catch-up contributions for the entire year.

Employer Match and Total Contribution Limit

The $24,500 limit is just for your employee contributions. When you add employer contributions (match, profit sharing, etc.), the total limit is much higher:

• Under age 50: $70,000 total (employee + employer)
• Age 50+: $78,000 total (employee + employer + catch-up)

Example:

Roth 401k vs Traditional 401k

The contribution limits are the same for both Roth 401k and Traditional 401k. You can split your $24,500 between them however you want.

Feature	Traditional 401k	Roth 401k
Contribution limit	$24,500	$24,500
Tax treatment	Pre-tax (deductible)	After-tax (not deductible)
Withdrawals	Taxed as income	Tax-free (if qualified)
RMDs required?	Yes, starting at 73/75	Yes, starting at 73/75

How to Maximize Your 401k Contributions

1. Contribute enough to get full employer match - This is free money!
2. Increase contributions by 1% each year - You won't notice the difference
3. Use windfalls wisely - Put bonuses and raises toward 401k
4. Make catch-up contributions at 50+ - Extra $8,000 can make a big difference
5. Front-load if possible - Contribute early in the year for more growth time

Frequently Asked Questions

Can I contribute to both a 401k and IRA?

Yes! The 401k and IRA have separate contribution limits. You can contribute $24,500 to a 401k and $7,500 to an IRA (or $8,500 if 50+) in the same year.

What happens if I contribute too much?

Excess contributions are taxed twice (once when contributed, once when withdrawn) plus a 6% penalty per year. Contact your plan administrator immediately to withdraw excess contributions.

Do employer contributions count toward my $24,500 limit?

No. The $24,500 is only for your employee contributions. Employer match and profit sharing count toward the $70,000 total limit, not your personal limit.

Can I change my contribution amount during the year?

Yes, most plans allow you to change your contribution percentage at any time. Check with your HR department for your plan's specific rules.

What if I change jobs mid-year?

The $24,500 limit applies to you personally across all employers. If you contributed $15,000 at your old job, you can only contribute $9,500 at your new job in the same year.