These caps are separate from an IRA. You can often use both in the same year. For which account to fund first, see 401(k) vs IRA.
This is education, not tax advice. Limits change annually.
2026 401(k) limits at a glance
| Limit | 2026 amount |
|---|---|
| Employee elective deferrals (under age 50) | $24,500 |
| Age 50+ catch-up (most plans) | +$8,000 → $32,500 total employee deferrals |
| Ages 60–63 higher catch-up (if plan allows) | +$11,250 instead of $8,000 |
| Overall annual additions (employee + employer, most plans) | $72,000 (higher with catch-ups—confirm IRS table) |
| Compensation limit used for plan calculations | $360,000 |
Source: IRS newsroom announcement that the 401(k) limit increases to $24,500 for 2026, and the IRS retirement topics pages for catch-ups and annual additions.
What counts toward the $24,500?
Elective deferrals you choose from pay—traditional pre-tax and Roth 401(k) deferrals usually share the same employee cap. Employer match and profit-sharing generally do not count against the $24,500 employee limit; they count toward the larger annual additions limit.
If you change jobs mid-year, deferrals to multiple plans usually still share the same employee elective-deferral ceiling. Track year-to-date contributions yourself; payroll systems do not always talk to each other.
Catch-up contributions
- Age 50+: $8,000 catch-up for 2026 on most 401(k)/403(b)/governmental 457/TSP plans that allow catch-ups.
- Ages 60, 61, 62, or 63: SECURE 2.0 higher catch-up of $11,250 for 2026 if the plan offers it.
- Catch-ups are only available if your plan document allows them.
Roth vs traditional inside the limit
Roth or traditional is a tax timing choice inside the same dollar cap. See Roth vs traditional. The match, when offered, is still usually pre-tax under current common plan designs—read your summary plan description.
How this fits a savings plan
After any employer match, many households still need an emergency fund and a path for how much to have saved by age. Limits are ceilings, not targets.
Mid-year job change: one employee limit, two employers
The $24,500 elective deferral cap (plus catch-ups if eligible) applies to you, not each employer. If you leave Company A in June and join Company B in July, both payroll systems may keep accepting deferrals until you hit the IRS ceiling—or until you notice.
Process checklist:
- Download year-to-date deferrals from the old plan portal before your last paycheck.
- Tell the new HR/payroll team how much room remains for the calendar year.
- If you over-defer, IRS rules require correction by a deadline; excess amounts can become taxable plus penalized if not fixed. Do not assume the plan auto-fixes.
- Employer match formulas often reset with tenure at a new employer; vesting schedules may differ. Match dollars are separate from your $24,500 but still subject to the larger annual additions limit ($72,000 for 2026 in most cases, with catch-up adjustments—confirm the IRS table).
Rolling old 401(k) money into an IRA or the new plan is a separate decision from contribution limits. See 401(k) vs IRA for funding order, not rollover marketing.
Ages 50, 60–63, and plan-document reality
Catch-up contributions sound simple on paper:
- At 50, many plans allow the $8,000 catch-up on top of $24,500.
- At 60–63, SECURE 2.0 allows a higher $11,250 catch-up if your plan adopts it—you cannot assume every payroll vendor turned it on for 2026.
Ask HR for the Summary Plan Description or a written confirmation of which catch-up tier applies. Some payroll systems lag IRS announcements; your birth date in the system matters for automatic eligibility.
Higher catch-ups help late starters align with savings-by-age benchmarks, but they do not remove the need for cash reserves. Raiding a 401(k) loan for emergencies undermines the extra deferrals.
What the overall limit means for heavy savers
The $72,000 annual additions figure (employee deferrals, employer match, profit-sharing, and certain other employer deposits in most defined contribution plans) rarely binds average workers—but it matters for:
- Highly compensated employees maxing deferrals and receiving large profit-sharing deposits
- Small-business owners using owner contributions in solo or group 401(k) designs
- People comparing mega backdoor Roth feasibility (plan-specific; not every plan allows after-tax buckets)
If you are nowhere near $72,000 in total additions, focus on match, fees, and investment menu before optimizing edge cases. If you are a business owner, your accountant runs a different calculator than this employee-deferral article.
Common friction points: waiting until December to raise deferrals (you may not spread $24,500 over two paychecks), choosing Roth 401(k) without checking take-home pay, ignoring HSA or FSA elections that also shrink paychecks during open enrollment, and pausing contributions during parental leave without restarting auto-increases when income returns.
What is the 401(k) contribution limit for 2026?
$24,500 in employee elective deferrals for most 401(k), 403(b), governmental 457, and TSP participants, per the IRS.
What is the 401(k) catch-up contribution for 2026?
Generally $8,000 if you are age 50 or older and the plan allows catch-ups. Ages 60–63 may have an $11,250 catch-up if the plan allows the higher SECURE 2.0 limit.
Does the employer match count toward the $24,500?
No. The match does not use up your employee elective deferral limit. It counts toward the separate overall annual additions limit.
Can I contribute to a 401(k) and an IRA in 2026?
Yes. The limits are separate. See the IRA 2026 limits article and 401(k) vs IRA for order-of-funding.
Do Roth 401(k) contributions use the same limit?
Yes. Roth and traditional elective deferrals generally share the same employee dollar cap for the year.
