2026 401(k) Contribution Limits: $24,500, Catch-Ups, and the Paycheck Math

On November 13, 2025, the IRS released Notice 2025-67, the annual cost-of-living adjustment for tax-qualified retirement plans. The headline number for 2026 is $24,500: the maximum an employee can contribute to a 401(k) in 2026, up $1,000 from $23,500 in 2025. The same $24,500 elective deferral limit applies to 403(b) plans, most 457(b) plans, and the federal Thrift Savings Plan.

But $24,500 is only one of several limits, and confusing them is the most common 401(k) planning error. Your own contributions, your employer's contributions, catch-up contributions, and the IRA limit all live under different ceilings. This guide lays out the full 2026 table, explains what counts toward each limit, works through the per-paycheck math, and flags the one rule change that catches high earners by surprise.

The 2026 Limits at a Glance

All figures below come from IRS Notice 2025-67, as summarized by multiple law-firm analyses of the notice. The 2025 column is included so you can see exactly what changed — and what did not.

The increases are effective January 1, 2026 — meaning they govern contributions made during calendar year 2026, not the return you file in 2026 for tax year 2025. If your payroll system is still set to a 2025 deferral percentage, it will not automatically raise your contribution to the new ceiling; you have to change the election yourself.

What Counts Toward the $24,500?

The $24,500 limit covers your own elective deferrals only — the money you choose to have withheld from your paycheck, whether pre-tax or Roth. The two types share a single cap: if you put $15,000 into a pre-tax 401(k) and $9,500 into a Roth 401(k), you have hit the limit, even though neither account alone reached $24,500. For how the pre-tax versus Roth choice plays out, see our comparison of 401(k) vs Roth IRA and Roth IRA vs Traditional IRA in 2026.

What does not count toward $24,500:

• Employer matching contributions and profit-sharing. These count toward the separate overall annual additions limit of $72,000 for 2026 (employee plus employer combined, before catch-ups), not toward your personal $24,500.
• Your IRA contributions. The IRA limit — $7,500 for 2026, up from $7,000 — is a separate ceiling for a separate account. You can max out both a 401(k) and an IRA in the same year, subject to IRA income phase-outs; see our Roth IRA contribution limits and income phaseouts guide for how those phase-outs work.
• Catch-up contributions themselves. The $8,000 (age 50+) or $11,250 (ages 60–63) sits on top of the $24,500 base — that is how the totals reach $32,500 and $35,750. But catch-ups are only available if your plan document allows them, and the higher ages-60–63 amount only applies if your plan offers it.

One trap deserves emphasis: if you change jobs mid-year, your deferrals to multiple plans still share one $24,500 ceiling. Payroll systems at different employers do not talk to each other, so it is on you to track year-to-date contributions and stop before you exceed the limit. Excess deferrals have to be corrected, and the correction is messier than the prevention.

The Paycheck Math: What Maxing Out Actually Costs per Pay Period

A $24,500 annual figure is abstract; the per-paycheck figure is what you feel. The arithmetic is simple division, and it is worth doing before you set your election:

• Biweekly pay (26 paychecks): $24,500 ÷ 26 = about $942 per paycheck. At age 50+, $32,500 ÷ 26 = about $1,250 per paycheck; at ages 60–63, $35,750 ÷ 26 = about $1,375.
• Monthly pay (12 paychecks): $24,500 ÷ 12 = about $2,042 per month.
• As a share of salary: maxing out requires deferring 24.5% of a $100,000 salary, about 30.6% of an $80,000 salary, and 16.3% of a $150,000 salary. Those percentages are the reason most people do not max out — and why the more realistic goal for most savers is to at least capture the full employer match before worrying about the ceiling.

A practical sequencing rule follows from the numbers. First, contribute enough to get the full employer match — that is an immediate, guaranteed return no market investment matches. Second, if you have high-interest debt, weigh paying it down before pushing deferrals toward the ceiling. Third, only then consider whether the gap between your current deferral and $24,500 is affordable without squeezing your cash flow. The ceiling is a maximum, not a target; the right number is the one you can sustain for all 26 paychecks, not the one you set in January and abandon in June.

The Catch-Up Rules, Including the Roth Twist for High Earners

Catch-up contributions exist because retirement saving is back-loaded: many people earn the most, and can save the most, in their fifties and early sixties. For 2026, the standard age-50 catch-up is $8,000, and SECURE 2.0's higher catch-up for workers who turn 60, 61, 62, or 63 during 2026 is $11,250 — unchanged from 2025. Note the asymmetry: the standard catch-up rose $500 while the super catch-up did not, so the gap between them narrowed to $3,250.

The rule that catches people by surprise is the mandatory Roth catch-up. Under SECURE 2.0, catch-up contributions for workers whose prior-year FICA wages exceeded $150,000 — the 2025 lookback year for 2026 catch-ups, up from a $145,000 base — must be made as Roth (after-tax) contributions rather than pre-tax, where the plan applies the rule. Three consequences follow. First, the tax deduction you might have expected on a catch-up disappears for affected workers; the money still grows tax-free, but it goes in after tax. Second, the rule applies to catch-ups only, not to the base $24,500 deferral, which can still be pre-tax. Third, if your plan has not implemented the Roth catch-up mechanism, check with your plan administrator before assuming your catch-up election will process as you expect — this is an administrative detail worth confirming in January, not discovering in December.

How the 2026 Limits Interact With Your Tax Bracket

Pre-tax 401(k) contributions save tax at your marginal rate — the rate on your last dollar, not your average rate. That is why the 2026 bracket thresholds matter alongside the contribution limits: a dollar deferred by a filer in the 22% bracket saves 22 cents of federal tax this year, while the same dollar deferred by a filer in the 32% bracket saves 32 cents. Our 2026 federal tax brackets guide has the full tables, and our marginal vs effective tax rate explainer shows why the marginal rate — not the average — is the right number for this decision. Roth contributions flip the timing: you pay tax now at today's marginal rate in exchange for tax-free growth and withdrawals, which favors Roth when you expect your retirement rate to be higher than today's.

One final interaction: pre-tax contributions reduce the taxable income that flows through the bracket table, and in some cases that is enough to keep a filer in a lower bracket. The $1,000 increase in the deferral limit is therefore worth slightly more than $1,000 of extra saving room — for a filer near a bracket boundary, it can also be worth a few hundred dollars of bracket management. Run both numbers — the contribution and the bracket — before finalizing your 2026 election.

The Bottom Line

For 2026, the numbers to remember are $24,500 for your own deferrals, $32,500 if you are 50 or older, $35,750 if you are 60 to 63, and $72,000 for everything combined with your employer. The $1,000 increase over 2025 is worth about $38 more per biweekly paycheck if you were already maxing out — modest, but it compounds: an extra $1,000 a year, sustained over a career, is real retirement money, especially when paired with the employer match it does not displace. Set your election for the full year, track it yourself if you change jobs, and confirm the Roth catch-up treatment early if your prior-year wages crossed the $150,000 threshold.

Disclaimer: This article is educational information only. It is not tax or investment advice. Contribution rules depend on your plan document and individual situation. Consult a qualified tax professional before making retirement planning decisions.

Sources

All 2026 limits in this article were verified against IRS Notice 2025-67 summaries on October 24, 2026:

• IRS Notice 2025-67 (November 13, 2025) cost-of-living adjustments — elective deferral $24,500, age-50 catch-up $8,000, ages 60–63 catch-up $11,250, annual additions $72,000, compensation limit $360,000, highly compensated employee threshold $160,000 — via Ogletree, "2026 COLAs Increases for Qualified Retirement Plans": ogletree.com
• Same notice, full 2026 vs 2025 table including HSA and Social Security figures — via Venable, "2026 IRS Dollar Limits on Benefits, Contributions, and Recognizable Compensation": venable.com
• 2026 IRA contribution limit of $7,500 (up from $7,000) and Roth IRA phase-out ranges, from the same Notice 2025-67 summaries: about401k.com
• Roth catch-up wage threshold of $150,000 for the 2025 lookback year (up from $145,000 base) under SECURE 2.0 §603 — via Ogletree (above).

Frequently Asked Questions

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

For 2026, the employee elective deferral limit for 401(k), 403(b), and most 457(b) plans is $24,500, up from $23,500 in 2025, under IRS Notice 2025-67. Workers age 50 and older can add an $8,000 catch-up for a $32,500 total; workers ages 60–63 can add an $11,250 catch-up for a $35,750 total, if their plan allows catch-ups.

Do employer matching contributions count toward the $24,500 limit?

No. The $24,500 limit covers only your own elective deferrals — pre-tax and Roth 401(k) contributions combined. Employer matching and profit-sharing contributions count toward the separate overall annual additions limit of $72,000 for 2026, not toward your $24,500.

How much do I need to contribute per paycheck to max out a 401(k) in 2026?

Dividing $24,500 by 26 biweekly paychecks gives about $942 per paycheck. On a $100,000 salary that is a 24.5% deferral rate; on $80,000 it is about 30.6%. If you are paid monthly, the figure is about $2,042 per month.

What is the Roth catch-up rule for 2026?

Under SECURE 2.0, catch-up contributions for workers whose prior-year FICA wages exceeded $150,000 (the 2025 lookback year) must be made as Roth (after-tax) contributions rather than pre-tax, where the plan requires it. Check with your plan administrator: the rule applies to catch-ups, not to the base $24,500 deferral.