| Contribution Type | 2026 Limit | 2025 Limit | Change |
|---|---|---|---|
| Employee elective deferrals | $23,500 | $23,000 | +$500 |
| Catch-up (age 50–59, 64+) | $7,500 | $7,500 | — |
| Super catch-up (age 60–63) — SECURE 2.0 | $11,250 | $11,250 | — |
| Total employee limit (50+) | $31,000 | $30,500 | +$500 |
| Total employee limit (60–63) | $34,750 | $34,250 | +$500 |
| §415 combined limit (under 50) | $70,000 | $69,000 | +$1,000 |
| §415 combined limit (50+) | $77,500 | $76,500 | +$1,000 |
| §415 combined limit (60–63) | $81,250 | $80,250 | +$1,000 |
| Compensation limit (§401(a)(17)) | $345,000 | $345,000 | — |
| Highly Compensated Employee threshold | $160,000 | $155,000 | +$5,000 |
The SECURE 2.0 Act of 2022 introduced a higher catch-up limit specifically for workers aged 60, 61, 62, or 63. Instead of $7,500, they can contribute $11,250 extra in 2026 — for a total of $34,750. At age 64 this drops back to the standard $7,500 catch-up. Plan your contributions carefully around this window if you're approaching this age range.
Employer contributions — matching or profit-sharing — count toward the §415 total limit ($70,000) but not the employee elective deferral limit ($23,500). This means your employer's match never reduces how much you personally can contribute.
| Scenario | Your Contribution | Employer Match | Total | §415 Remaining |
|---|---|---|---|---|
| Max employee only (under 50) | $23,500 | $0 | $23,500 | $46,500 for employer |
| Employee + 4% match on $100K salary | $23,500 | $4,000 | $27,500 | $42,500 |
| Employee + 6% match on $150K salary | $23,500 | $9,000 | $32,500 | $37,500 |
| Max employee + max employer match | $23,500 | $46,500 | $70,000 | $0 |
If your employer matches 100% of contributions up to 4% of salary, and you earn $80,000, that's a free $3,200 per year. Not contributing enough to capture the full match is leaving guaranteed 100% return on the table. This should be your first financial priority — before paying off low-interest debt, before investing in a taxable account.
Most employers now offer both a traditional and Roth 401k option. The contribution limits are identical — $23,500 total across both. The difference is when you pay tax.
| Traditional 401k | Roth 401k | |
|---|---|---|
| Tax on contribution | Pre-tax — reduces taxable income now | After-tax — no deduction |
| Tax on withdrawals | Taxed as ordinary income | Tax-free (if rules met) |
| 2026 income limit | None | None (unlike Roth IRA) |
| Required Minimum Distributions | Yes, starting age 73 | No RMDs (from 2024 onwards) |
| Best for | High earners expecting lower tax bracket in retirement | Younger workers, those expecting higher future rates |
Many financial planners recommend splitting contributions between traditional and Roth — e.g., $12,000 traditional + $11,500 Roth — to diversify your tax exposure in retirement. You won't know what tax rates will be in 20–30 years, so having both pre-tax and after-tax buckets gives you flexibility to manage your tax bill in any environment.
If you're self-employed — freelancer, sole proprietor, or single-member LLC — a Solo 401k lets you contribute as both employer and employee, significantly increasing what you can shelter.
| Net Self-Emp Income | Employee | Employer (25%) | Total |
|---|---|---|---|
| $60,000 | $23,500 | $15,000 | $38,500 |
| $100,000 | $23,500 | $25,000 | $48,500 |
| $150,000 | $23,500 | $37,500 | $61,000 |
| $186,000+ | $23,500 | $46,500 | $70,000 (max) |
Exceeding the $23,500 elective deferral limit — most commonly when changing jobs and contributing to two plans in the same year — has serious tax consequences:
If you change jobs mid-year, both plan administrators are unaware of each other's contributions. You could inadvertently contribute $23,500 to Plan A and another $10,000 to Plan B — a $10,000 excess. Track your year-to-date contributions carefully when switching employers. The IRS does not automatically flag this for you.
The answer depends on your situation, but a practical priority order:
Enter your salary, contribution %, employer match, and years to retirement — see your projected balance with compound growth.
Open 401k Calculator →The 2026 employee 401k contribution limit is $23,500. If you are age 50 or older, you can make an additional $7,500 catch-up contribution for a total of $31,000. Workers aged 60–63 get a higher catch-up of $11,250 under SECURE 2.0, for a total of $34,750. The combined employee + employer limit is $70,000.
Yes. The employee elective deferral limit increased from $23,000 in 2025 to $23,500 in 2026. The total §415 limit increased from $69,000 to $70,000. The catch-up limit for age 50+ held at $7,500.
Workers age 50 and older can contribute an extra $7,500 in 2026, for a total of $31,000. Under the SECURE 2.0 Act, workers aged exactly 60–63 get a higher catch-up limit of $11,250, bringing their total to $34,750. At age 64 it drops back to $7,500.
Yes — the 401k limit ($23,500) and IRA limit ($7,000) are completely separate. You can max both in the same year. Your ability to deduct a Traditional IRA contribution phases out at higher incomes if you participate in a workplace plan — but Roth IRA contributions have their own separate income limits.
Over-contributions must be withdrawn by April 15 of the following year, along with any earnings. If not corrected, the excess is taxed twice — once when contributed and again when withdrawn. This most commonly happens when changing jobs mid-year and contributing to two plans. Contact your plan administrator immediately.