Key takeaways 

• Employees can invest more money into 401(k) plans in 2026, with contribution limits increasing from $23,500 in 2025 to $24,500 in 2026.
• The limit on catch-up contributions increases to $8,000 for employees age 50 or over in 2026, while the higher catch-up limit for people ages 60 to 63 remains $11,250.
• The definition of a “highly-compensated employee” – an individual who faces different limits on contributions – remains $160,000 for 2026.

For 2026, the employee 401(k) elective deferral limit is $24,500 (up from $23,500 in 2025). Catch-up contributions are generally capped at $8,000 for people age 50 or older, while the ages 60 to 63 super catch-up remains $11,250. Total employee + employer contributions are capped at $72,000 (before any catch-up amounts).

As you contemplate how to get started, consider how the 401(k) contribution limits can fit into your overall income and savings goals. For example, you could have a trickier time budgeting from month to month because a larger portion of your income may go to saving for retirement. However, when you see how much of an impact saving can have on your retirement savings, you may decide that contributing the annual maximum 401(k) amount can benefit your retirement savings plan over the long-term.

In this piece, we’ll review the 401(k) contribution limits for 2025 and 2026. We’ll also go over employer-employee combination contribution limits and the highly compensated contribution limits. Finally, we’ll review traditional and Roth IRA contribution limits.

Read more: Rollover IRA taxes and the 60-day rule

401(k) contribution limits in 2025 and 2026

First, what are contribution limits? Contribution limits are set by the IRS and refer to the amounts that can be contributed to a 401(k) each year.¹ The maximum deferral limit refers to the annual amount that an employee can defer from their pay to a 401(k) plan.  The maximum contribution amount, on the other hand, refers to the total amount of funds both the employee and employer can contribute during the year.  Total contributions cannot exceed 100% of an employee’s annual compensation.

Let’s look at the 401(k) contribution limits¹ in 2026 compared to 2025:

These amounts also apply to 403(b) plans, and most 457(b), as well as the federal government’s Thrift Savings Plans. A 403(b) plan is an employer-sponsored retirement plan that’s very similar to a 401(k) plan. The key difference is that 403(b) plans are offered by public schools, churches, and 501(c)(3) non-profit organizations. The IRS typically announces official limits for the coming year in late October or early November.

Read more: 401(k) vs 403(b): What's the difference?

Employer and employee 401(k) contribution limits

You cannot go over a specified limit for total plan contributions, which applies to the sum of elective deferrals, employer matching contributions, and employer non-elective contributions. We define all these below.

• Elective deferrals: Refers to amounts of money you elect to defer from your pay and into your employer’s retirement plan.³
• Employer matching contributions: Refers to contributions your employer makes to your retirement plan account if you contribute to the plan from your salary.⁴ Here’s an example of a common 401(k) matching formula: 50 cents on the dollar up to 6% of the employee’s pay. Not taking advantage of the match may forgo employer contributions in your account, so it’s usually advantageous for you to contribute enough to get the match.
• Employer non-elective contributions: When an employer contributes to an employee in an employer-sponsored retirement plan (whether the employee contributes or not), these are employer non-elective contributions.⁵  They are generally also known as profit-sharing contributions. 

In 2026, the maximum contribution limit on combined employee and employer contributions is $72,000, up from $70,000 in 2025.⁶

Read more: What is 401(k) matching and how does it work?

Catch up contributions for individuals age 50 and over

Individuals aged 50 and older are allowed to put more money into a 401(k) every year to help them make up for earlier years when they couldn't spare as much. In 2026, the catch-up contribution limit is $8,000.⁷

You can apply the catch-up contribution limit from the start of the year until the end of the year if you are 50 or older during the year. Let’s say you happened to turn 50 on December 31, 2026. You can still take advantage of the catch-up contribution for the entire year.

Catch up contributions for individuals ages 60 to 63

For 2026, the higher catch-up contribution limit for individuals who attain ages 60 to 63 in 2026 remains $11,250 (instead of the standard $8,000 catch-up amount).⁸

Highly compensated employee 401(k) contribution limits

Highly compensated employees face different limits than non-highly compensated employees.

Who is a highly compensated employee (HCE) and how does being one affect your 401(k) contribution limits? It’s important to know the IRS rules for 401(k) contribution limits. If you own more than 5% of the interest in a business or receive compensation above a certain amount (more than $160,000 in 2025 and the same in 2026, as determined by the IRS), you’re considered an HCE employee for 401(k) retirement plan purposes.⁹ In addition, the annual compensation limit that can be taken into account for certain retirement plan calculations is $360,000 for 2026 (up from $350,000 for 2025).¹⁰

You will have to follow more stringent contribution limits. You can take a look at the IRS tests that impact HCE contribution limits.¹¹

Differences between Roth 401(k) contribution types

Some employers offer both a traditional pre-tax 401(k) and a Roth 401(k) option, but what’s the difference between each? Let’s walk through the differences between both account types so you can decide which type works best for you.

• Roth 401(k): A Roth 401(k) is a contribution option within an employer-sponsored savings plan that enables you to invest after-tax dollars for retirement. You pay income taxes on your contributions but don’t pay taxes when the amounts are distributed from the plan if you take withdrawals after you reach age 59½ and the account has been funded for at least five years. All your accumulated contributions and any earnings may be withdrawn tax free.^*,**
• Traditional pre-tax 401(k): A traditional pre-tax 401(k) is a contribution option within an employer-sponsored plan that gives you the option to defer paying income tax on the amount you contribute for retirement. For example, let’s say you earn $50,000 and max out your retirement plan at $24,500. Assuming you have no other deductions, your taxable earnings will reduce from $50,000 to $25,500. ($50,000 – $24,500 = $25,500).
• Wondering whether you should contribute to both? You might want to take a tax-diversified approach because it could allow you to diversify your retirement savings. You can contribute to both a Roth and a traditional pre-tax 401(k) plan if your total contribution (as an employee) doesn’t go over $23,500 in 2025 and $24,500 in 2026.
• In addition to Roth and traditional pre-tax 401(k) plans, some employers also offer an “after-tax” contribution option, allowing you to save up to the total annual limit of $70,000 in 2025 and $72,000 in 2026. This means you can put away after-tax money and any investment growth is tax-deferred in your 401(k) account until withdrawal, at which point taxes would be due.

Read more: What to know about 401(k) rollover options

New SECURE 2.0 Act rules for 2026

New for SECURE 2.0 Act catch-up rules: IRS guidance sets the Roth catch-up wage threshold at $150,000 (based on 2025 wages) for determining whether an individual’s catch-up contributions for 2026 must be designated as Roth contributions.¹² The U.S. Treasury and the IRS also state that the final regulations’ Roth catch-up requirement generally applies to contributions in taxable years beginning after Dec. 31, 2026 (with good-faith early implementation permitted).

The bottom line

It’s important to pay attention to 401(k) contribution limits so you don’t go over the limit or contribute too little to meet your goals.

Wonder how your 401(k) balance compares to others who are close to your age? Check out where you fit in with your peers: Empower’s average 401(k) balance by age.

Financial professionals suggest contributing regularly to your retirement savings plan. It’s also a good idea to at least contribute enough to your 401(k) that you receive the full match from your employer. Contributing even more beyond your employer’s match may help you build additional retirement savings, depending on your budget and goals.

Remember, preparing for retirement should be part of your overall financial plan. You can use Empower's free and secure professional-grade online financial tools to see all your accounts in one place, analyze your spending, and plan for long-term financial goals.

Frequently asked questions about 401(k) contribution limits for 2026

What is the 401(k) contribution limit for 2026?

The employee elective deferral limit for 2026 is $24,500.

What is the 401(k) catch-up contribution limit for 2026 if you’re age 50 or older?

For 2026, the catch-up contribution limit that generally applies at age 50+ is $8,000.

What is the special 401(k) catch-up limit for ages 60 to 63 in 2026?

For individuals who attain ages 60, 61, 62, or 63 in 2026, the catch-up limit is $11,250.

What is the total 401(k) contribution limit (employee + employer) for 2026?

The defined contribution “annual additions” limit for 2026 is $72,000 (not counting catch-up contributions).

Do Roth and traditional 401(k) contributions have different limits?

No — Roth and pretax 401(k) employee contributions share the same overall elective deferral limit (combined across contribution types).

Do these 2026 limits also apply to 403(b) and 457 plans?

Yes — the IRS says the $24,500 employee limit applies to 401(k), 403(b), governmental 457 plans, and the Thrift Savings Plan for 2026.

What is the Roth catch-up wage threshold tied to 2026 catch-up contributions?

The Roth catch-up wage threshold (based on 2025 wages) used to determine Roth catch-up treatment for 2026 is $150,000, so any employees who make $150,000 or more must designate the funds as Roth contributions.¹³

When do the final Roth catch-up regulations generally apply?

The IRS says the final regulations generally apply to contributions in taxable years beginning after December 31, 2026, with a “reasonable, good-faith interpretation” standard before the applicability date.