The 2026 employee contribution limit for a 401(k) plan is $24,500, according to IRS Notice 2025-67.
Workers who are eligible to make catch-up contributions may be able to contribute more:
- Age 50 or older: an additional $8,000
- Age 60, 61, 62, or 63 during 2026: an additional $11,250 instead of the standard $8,000 catch-up amount
The overall annual limit for defined contribution plans increases to $72,000 in 2026. Catch-up contributions are separate from that $72,000 limit.
Key takeaway
For 2026, the standard employee 401(k) deferral limit is $24,500. The maximum employee deferral can rise to $32,500 for most catch-up-eligible workers age 50 or older, or to $35,750 for workers who reach age 60, 61, 62, or 63 during the year.
2026 401(k) contribution limits at a glance
| Limit | 2026 amount | 2025 amount | Change |
|---|---|---|---|
| Employee elective deferral limit | $24,500 | $23,500 | +$1,000 |
| Standard catch-up contribution, generally age 50+ | $8,000 | $7,500 | +$500 |
| Higher catch-up contribution for ages 60-63 | $11,250 | $11,250 | No change |
| Overall defined contribution plan limit | $72,000 | $70,000 | +$2,000 |
| Annual compensation limit used for qualified plans | $360,000 | $350,000 | +$10,000 |
The 2025 and 2026 amounts above come directly from IRS Notice 2025-67.
The employee 401(k) contribution limit is $24,500
For 2026, the limit on elective deferrals under Internal Revenue Code Section 402(g) increases from $23,500 to $24,500.
This is the amount an employee can generally choose to defer from pay into a 401(k) plan during 2026, before applying any catch-up contribution for which the employee is eligible.
The IRS notice establishes one elective-deferral limit under Section 402(g). It does not create separate employee limits for different tax treatments inside a 401(k).
Catch-up contribution limit for age 50 or older
The standard catch-up contribution limit for eligible workers age 50 or older increases to $8,000 in 2026.
That means a catch-up-eligible worker who is not in the special age 60-63 group may have a maximum employee deferral of:
$24,500 + $8,000 = $32,500
This $32,500 figure is a calculation based on the two official IRS limits. It is not listed as a separate line item in the notice.
Higher catch-up limit for ages 60 through 63
A higher catch-up contribution applies to eligible workers who reach age 60, 61, 62, or 63 during 2026.
For this group, the catch-up contribution limit remains $11,250.
Their potential maximum employee deferral is:
$24,500 + $11,250 = $35,750
The higher $11,250 catch-up replaces the standard $8,000 catch-up for eligible workers in this age range. It is not added on top of the $8,000 amount.
Age check
Eligibility for the higher catch-up depends on the age the participant attains during 2026. The IRS notice specifically identifies ages 60, 61, 62, and 63.
Overall defined contribution plan limit: $72,000
The annual limit for defined contribution plans under Internal Revenue Code Section 415(c)(1)(A) increases from $70,000 to $72,000 in 2026.
This is not the same as the employee elective-deferral limit.
The $72,000 limit is the broader plan-level annual addition limit. It can include amounts beyond the employee's regular elective deferrals, depending on the plan and the type of contribution involved.
Catch-up contributions are treated separately from the Section 415(c) limit. Based on the official 2026 amounts:
- A participant using the standard $8,000 catch-up could have total annual additions plus catch-up contributions of up to $80,000
- A participant eligible for the $11,250 age 60-63 catch-up could have total annual additions plus catch-up contributions of up to $83,250
These two totals are arithmetic combinations of the official IRS limits. Actual contributions depend on plan terms, compensation, eligibility, and other tax rules.
2025 vs. 2026: what changed?
The main 401(k)-related limits increased for 2026.
Employee deferrals
The employee elective-deferral limit rose by $1,000, from $23,500 to $24,500.
Standard catch-up contributions
The standard catch-up limit rose by $500, from $7,500 to $8,000.
Age 60-63 catch-up contributions
The higher catch-up amount stayed at $11,250.
Overall defined contribution limit
The broader Section 415(c) limit rose by $2,000, from $70,000 to $72,000.
Examples
The examples below use only the official 2026 IRS limits and straightforward arithmetic. They do not assume that every plan permits every contribution type.
Example 1: Worker age 40
A 40-year-old employee is not eligible for an age-based catch-up contribution.
| Contribution component | Amount |
|---|---|
| Employee elective deferral limit | $24,500 |
| Catch-up contribution | $0 |
| Maximum employee deferral shown in this example | $24,500 |
Example 2: Worker age 52
A 52-year-old who is eligible for catch-up contributions may use the standard catch-up amount.
| Contribution component | Amount |
|---|---|
| Employee elective deferral limit | $24,500 |
| Standard catch-up | $8,000 |
| Maximum employee deferral shown in this example | $32,500 |
Example 3: Worker age 61
A worker who reaches age 61 during 2026 may be eligible for the higher catch-up amount.
| Contribution component | Amount |
|---|---|
| Employee elective deferral limit | $24,500 |
| Age 60-63 catch-up | $11,250 |
| Maximum employee deferral shown in this example | $35,750 |
Roth catch-up wage threshold for 2026 contributions
IRS Notice 2025-67 also raises the wage threshold used to determine whether certain catch-up contributions made in 2026 must be designated as Roth contributions.
The relevant prior-year wage threshold increases from $145,000 to $150,000.
More precisely, the notice states that the 2025 wage threshold used for determining the Roth treatment of certain 2026 catch-up contributions is $150,000.
This rule does not apply identically to every retirement arrangement. The notice excludes plans described in Internal Revenue Code Sections 408(k) and 408(p) from this specific threshold provision.
Because Roth catch-up implementation can depend on plan type and payroll administration, participants affected by this threshold should confirm how their employer's plan applies the rule.
Annual compensation limit: $360,000
The annual compensation limit under several qualified-plan provisions increases from $350,000 to $360,000 for 2026.
This does not mean an employee may defer $360,000 into a 401(k). It is a separate plan-administration limit used when qualified plans calculate contributions and benefits.
What the IRS notice does not establish
IRS Notice 2025-67 sets the inflation-adjusted dollar limits for 2026. It does not, by itself, answer every operational question about a specific 401(k) plan.
The notice does not establish:
- Whether a particular employer plan permits after-tax contributions
- Whether a plan offers Roth 401(k) contributions
- Whether a plan allows catch-up contributions
- How an employer calculates matching contributions
- A participant's payroll election deadline
- Whether a participant is otherwise eligible under the plan's terms
For those questions, participants should review the plan document or contact the plan administrator.
How the 2026 limits can affect retirement planning
Higher annual contribution limits can give workers more tax-advantaged saving capacity, but the contribution limit alone does not determine whether a retirement plan is on track.
A useful retirement projection should also account for:
- Current retirement savings
- Monthly or annual contributions
- Expected retirement spending
- Time until retirement
- Investment return assumptions
- Inflation assumptions
- Other retirement income
RetireToday's retirement calculator can help estimate how changing contributions may affect a projected retirement timeline. The calculator is a planning tool, not a substitute for individualized tax or investment advice.
Practical takeaway
For 2026:
- The standard employee 401(k) deferral limit is $24,500.
- The standard catch-up contribution is $8,000 for eligible workers age 50 or older.
- The higher catch-up contribution is $11,250 for eligible workers who reach age 60, 61, 62, or 63 during the year.
- The overall defined contribution plan limit is $72,000.
- The annual compensation limit is $360,000.
- The wage threshold used for certain mandatory Roth catch-up determinations for 2026 is $150,000, based on 2025 wages.
Summary
The IRS increased several important retirement-plan limits for 2026.
The employee elective-deferral limit is now $24,500. The standard catch-up limit is $8,000, while the special catch-up amount for ages 60 through 63 remains $11,250. The overall defined contribution limit increases to $72,000.
Workers should separate the employee deferral limit from the broader plan limit and verify which contribution features their employer's plan actually offers. If you are also saving outside a workplace plan, compare these limits with the Roth IRA contribution limits and your broader retirement savings by age progress.
Frequently asked questions
What is the 401(k) contribution limit for 2026?
The employee elective-deferral limit is $24,500 for 2026.
How much can someone age 50 or older contribute to a 401(k) in 2026?
An eligible worker using the standard $8,000 catch-up contribution may defer up to $32,500. This is the $24,500 employee limit plus the $8,000 catch-up.
What is the 401(k) catch-up limit for ages 60 through 63 in 2026?
The catch-up contribution limit is $11,250 for eligible workers who reach age 60, 61, 62, or 63 during 2026.
Can someone age 61 contribute $35,750 in 2026?
An eligible 61-year-old may have an employee deferral limit of $35,750, calculated as the $24,500 regular limit plus the $11,250 higher catch-up contribution.
Is the $72,000 limit the same as the employee contribution limit?
No. The $24,500 limit applies to employee elective deferrals. The $72,000 limit is the broader annual defined contribution plan limit under Section 415(c).
Are catch-up contributions included in the $72,000 limit?
The IRS notice treats catch-up contributions separately from the Section 415(c) defined contribution limit.
Did the age 60-63 catch-up limit increase for 2026?
No. It remains $11,250.
What was the employee 401(k) limit in 2025?
The 2025 employee elective-deferral limit was $23,500.
Does every 401(k) plan allow catch-up contributions?
The IRS notice provides the federal dollar limit, but it does not state that every plan must offer the feature. Participants should check their plan terms.
Does this article provide tax advice?
No. It summarizes official IRS limits for general educational purposes.
Sources
- Internal Revenue Service, IRS Notice 2025-67 — 2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living.
Editorial note
This article is educational and summarizes official IRS limits. It does not provide individualized investment, tax, or legal advice. Participants should review their plan document, contact their plan administrator, or speak with a qualified professional before making contribution or tax-planning decisions.
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