2026 401k Contribution Limits: New Retirement Saving Caps

In 2026, the Internal Revenue Service updated the 2026 401k contribution limits, allowing savers to contribute more to their retirement accounts than the previous year. These changes include higher elective deferral limits and increased catch‑up contributions for older workers, giving Americans a chance to boost tax‑advantaged retirement savings.

Higher Elective Deferral Limit

For the 2026 tax year, the maximum amount employees can contribute to a 401(k) plan through regular elective deferrals is $24,500, up from the 2025 limit of $23,500. This increase allows workers to set aside more of their income on a tax‑deferred or Roth after‑tax basis, depending on plan options.([turn0search24])

Increased Catch‑Up Contribution for 50+

Workers aged 50 and older can make additional catch‑up contributions beyond the regular limit. In 2026, this catch‑up limit rises to $8,000, up from $7,500 in 2025. Participants aged 60 to 63 may contribute even more under the “super catch‑up” provision, with a limit of $11,250.([turn0search18][turn0search20])

Total Annual Contribution Ceiling

Beyond individual elective deferrals and catch‑up contributions, the total amount that can be contributed to a 401(k) account in 2026 — including employer matching and profit‑sharing — increases as well. The overall defined contribution limit for many plans rises to $72,000, up from $70,000 the previous year.([turn0search39])

Roth Catch‑Up Rule for High Earners

Starting in 2026, if a saver’s income exceeds a certain threshold — generally $150,000 in FICA wages the year before — catch‑up contributions must be designated as Roth (after‑tax) contributions instead of traditional pre‑tax. This change affects the timing of tax benefits but can offer tax‑free withdrawals in retirement under qualifying rules.([turn0search21])

Why These Changes Matter

Increasing 401(k) contribution limits gives workers more room to save for retirement, which is especially important given rising life expectancies and longer working years. Higher limits help those nearing retirement age catch up faster on savings, while the Roth catch‑up requirement prompts savers to rethink tax planning strategies.

Conclusion

The 2026 401k contribution limits reflect meaningful increases in how much Americans can save for retirement through employer plans. Understanding the updated limits and how to apply catch‑up contributions can help savers optimize their retirement strategies and take full advantage of tax‑advantaged accounts in 2026 and beyond.