2026 401(k) Contribution Limits: Under 50, 50+, and Ages 60–63
In this guide
The 2026 401(k) contribution limits are a set of related ceilings, not one number. The regular employee elective-deferral limit is $24,500. The general age-50 catch-up is $8,000, while an eligible participant who turns 60, 61, 62, or 63 during 2026 may have an $11,250 catch-up instead.
Employer contributions use a different limit. Annual additions are generally capped at the lesser of $72,000 or 100% of compensation, before eligible catch-up contributions. Compensation used for contribution calculations is generally limited to $360,000 in 2026. A new Roth catch-up rule can also affect workers whose prior-year wages from the plan sponsor exceeded $150,000.
2026 Limits at a Glance
| Participant | Regular employee limit | Potential employee total |
|---|---|---|
| Under age 50 | $24,500 | $24,500 |
| Age 50–59 or 64+ | $24,500 + $8,000 catch-up | $32,500 |
| Ages 60–63 | $24,500 + $11,250 special catch-up | $35,750 |
The special catch-up for ages 60 through 63 replaces the general $8,000 catch-up; it is not added on top. The plan must permit catch-up contributions, and payroll or plan rules can impose additional restrictions.
Employee Deferrals and Employer Contributions Use Different Limits
The $24,500 limit applies to traditional and Roth 401(k) elective deferrals combined. Choosing Roth does not create a second employee bucket. For example, $14,500 of traditional contributions plus $10,000 of Roth contributions reaches the regular limit.
Employer match and profit-sharing contributions generally do not reduce the $24,500 employee limit. They count with regular employee contributions toward the separate annual-additions limit. For 2026, annual additions generally cannot exceed the lesser of $72,000 or 100% of the participant's compensation, before eligible catch-up contributions.
This lesser-of rule matters for lower-paid workers. If compensation is $50,000, the annual-additions ceiling is generally $50,000 rather than $72,000. Catch-up contributions are treated separately when the participant and plan qualify.
The $360,000 Compensation Limit
The amount of compensation a plan can generally take into account when determining contributions is limited to $360,000 for 2026. A match described as a percentage of eligible compensation may therefore stop growing after the plan reaches the applicable compensation ceiling, even when actual salary is higher.
Plan definitions still matter. A plan may exclude bonuses, commissions, overtime, or other pay from eligible compensation, or apply a lower operational limit. Read the summary plan description and confirm the formula with the plan administrator.
2026 Roth Catch-Up Requirement
Beginning in 2026, a catch-up-eligible participant whose prior-year FICA wages from the employer sponsoring the plan exceeded $150,000 generally must make catch-up contributions on a Roth basis when the applicable plan offers catch-up contributions under the rule. The threshold looks to prior-year wages from the plan sponsor, not simply household income or current salary.
This rule affects the tax treatment of catch-up dollars, not the regular $24,500 employee limit. It can also interact with plan design and payroll administration, so workers near the threshold should confirm how the employer will identify and process catch-up contributions.
What Happens When You Have Two Jobs?
The employee elective-deferral limit generally follows the person across 401(k) and 403(b) plans. Changing employers does not automatically restart the $24,500 limit. If you deferred $15,000 at one employer, only $9,500 of regular room remains for another covered plan in 2026.
Unrelated payroll systems may not know what you contributed elsewhere. Track year-to-date deferrals and tell the new employer what remains. Rules involving governmental 457(b), SIMPLE, and other plan types can differ, so do not assume every workplace account shares the same bucket.
How Employer Match Changes the First Target
A legal maximum is not automatically the right household contribution. The employer match often identifies a useful first milestone. If a plan matches 50% of contributions up to 6% of eligible pay, contributing 6% is normally required for the full stated match.
On $80,000 of eligible compensation, the employee contributes $4,800 and the simple match is $2,400. Contributions above 6% can still support retirement, but they may not receive additional match. Use the 401(k) Employer Match Calculator to separate employee dollars, employer dollars, and unclaimed match.
Common 2026 Limit Mistakes
- Adding Roth and traditional limits: they share the same employee elective-deferral ceiling.
- Counting employer match against $24,500: match belongs in the separate annual-additions calculation.
- Stacking both catch-up amounts: the ages 60–63 amount replaces the general age-50 catch-up.
- Ignoring the lesser-of rule: annual additions are capped at the lesser of $72,000 or 100% of compensation.
- Using unlimited salary for a match: compensation taken into account is generally capped at $360,000.
- Missing the Roth catch-up rule: prior-year sponsor wages above $150,000 can require 2026 catch-up dollars to be Roth.
- Restarting after a job change: personal elective deferrals generally remain subject to one annual limit.
How to Set a Payroll Percentage
Choose a dollar target, subtract contributions already made, and divide the remainder by expected eligible pay. Someone earning $98,000 evenly through 2026 would need a rough full-year rate of 25% to reach $24,500. A midyear start requires a higher rate and may reduce take-home pay sharply.
Review the election after a raise, bonus, unpaid leave, or job change. Check whether the match is calculated each paycheck, whether the plan has a year-end true-up, and whether front-loading could cause missed match later in the year.
Use Limits as Guardrails
The correct contribution also depends on cash flow, expensive debt, emergency savings, investment options, taxes, and retirement timing. Capturing a full match may be a sensible early objective, but forcing the legal maximum while missing bills or carrying avoidable high-interest debt is not automatically an improvement.
For authoritative details, review the IRS 401(k) contribution-limit guidance and the IRS catch-up contribution guidance. Your plan document controls plan-specific matching, eligible compensation, vesting, and payroll rules.
Age-61 example
An eligible 61-year-old may defer $35,750 in 2026: $24,500 plus the $11,250 special catch-up. If the employer adds $6,000, the catch-up remains outside the regular annual-additions limit, while the employee's regular deferral and employer contribution are tested against the lesser of $72,000 or 100% of compensation.