New 401(k) Contribution Limits for 2026: An Opportunity to Save More

Posted on Jan 1, 2026

The IRS has announced new contribution limits for 401(k) plans in 2026, giving retirement savers another opportunity to put more away on a tax-advantaged basis. 

Starting in 2026, employees will be able to contribute up to $24,500 to their 401(k) plans—an increase from the 2025 limit of $23,500. These annual cost-of-living adjustments also apply to 403(b) plans, most governmental 457 plans, and the federal government’s Thrift Savings Plan.

Key limits for 2026 (at a glance)

• Employee salary deferrals: $24,500

• Catch-up contributions (age 50+): $8,000 (for a total of $32,500)

• Enhanced catch-up (ages 60–63): $11,250 (for a total of $35,750)

• Total contributions (employee + employer): $72,000 (catch-up contributions may be permitted above this amount, if eligible)

What should you do with this information? If you’re not already on track to max out, consider increasing your deferral percentage now so the change is spread across the year. 

Even a 1% increase can make a meaningful difference over time—especially when paired with an employer match.

A quick note for plan sponsors

Contribution limit updates are a good reminder to confirm your payroll settings, employee communications, and plan operations are ready for the new year. 

If your plan allows catch-up contributions, be sure you’re also prepared for SECURE 2.0 catch-up changes. For 2026, the wage threshold tied to the Roth catch-up requirement is $150,000 (based on prior-year wages), meaning certain higher-paid participants may be required to make catch-up contributions on a Roth (after-tax) basis. For technical details, see Notice 2025-67.

As always, individuals should consult with financial advisors to determine the best strategy for their unique circumstances.

This material is provided for informational purposes only, and is not intended as authoritative guidance, legal advice, or assurance of compliance with state and federal regulations.