Max 401(k) contribution 2026: Workers saving for retirement get a bigger 401(k) space in 2026. The IRS says the basic employee limit for elective deferrals is now $24,500, up from $23,500 in 2025. That limit covers the total a worker puts into traditional and Roth 401(k) accounts during the year. The IRS also says people who want to reach the full amount would need to save about $2,042 a month, or about $942 from each of 26 paychecks.
The larger limit matters because 401(k) savings can lower taxable income while helping people build money for later. The IRS also says the employee limit applies across all plans a worker uses, not one separate limit for each job. So if someone changes employers during the year, they still need to watch the total amount they put in across every 401(k) plan.
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What Older Workers can Add?
Workers who are at least 50 by the end of 2026 may be allowed to add an extra $8,000 as a catch-up contribution, if their plan allows it. That brings their personal limit to $32,500 for most workers in that age group. For employees who turn 60, 61, 62, or 63 in 2026, the higher SECURE 2.0 catch-up amount is $11,250, which lifts their total employee contribution ceiling to $35,750.
There is also a Roth rule for higher earners. For 2026, the IRS says the wage threshold used to decide whether catch-up contributions must be Roth is $150,000. The IRS’s final Roth catch-up regulations generally apply to contributions in taxable years beginning after December 31, 2026.
Employer Money Matters
Employee contributions are not the only number to watch. Employer matching contributions do not count toward the $24,500 employee limit, but the IRS says the combined total of employee contributions, employer contributions, and certain after-tax contributions generally cannot go above $72,000 in 2026, or 100% of pay if that is lower.
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That is why workers should also check how their own plan handles matching money. The safest move is to spread contributions across the year and keep an eye on total deposits, especially after changing jobs. Even if someone cannot hit the full maximum, saving enough to get the full employer match is still a smart move.
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