Last updated: October 30, 2026.
Good news for retirement savers: the IRS raised the 401(k) contribution ceiling for 2026. You can now put away $24,500 of your own paycheck money per year — $1,000 more than 2025's $23,500 limit. It may not sound dramatic, but invested consistently and left to compound, that extra thousand matters more than you'd think.
These limits apply to 401(k)s, 403(b)s, most governmental 457 plans, and the federal Thrift Savings Plan. The numbers were announced in IRS Notice 2025-67.
The 2026 limits at a glance
| Who | Your max employee contribution | |-----|-------------------------------| | Under 50 | $24,500 | | Age 50+ (standard catch-up: +$8,000) | $32,500 | | Ages 60–63 (SECURE 2.0 "super" catch-up: +$11,250) | $35,750 |
A few details worth knowing:
- Catch-ups are per-person, not per-plan. The $24,500 cap covers your combined pre-tax and Roth contributions across all your workplace plans.
- Your employer match is separate. The total going into your account — your money plus your employer's match and profit-sharing — can reach $72,000 for 2026. Catch-up contributions sit on top of that.
- The super catch-up only applies at ages 60, 61, 62, and 63 (under the SECURE 2.0 Act), and only if your plan allows it. At 64, you drop back to the standard $8,000 catch-up.
- High earners take note: starting in 2026, if you earned over $150,000 in FICA wages last year, your catch-up contributions must go into the Roth side of your plan.
What the extra $1,000 is really worth
Here's where it gets fun. Contributing an extra $1,000 per year doesn't just give you $1,000 more in retirement — it gives you that $1,000 plus decades of growth on it. The longer you save, the bigger the multiplier.
Try it yourself: our compound interest calculator lets you plug in an annual contribution and see how it grows year by year at any return rate you choose. Compare saving $23,500 versus $24,500 a year over 20 or 30 years — the gap will surprise you. You can also model what happens when you add the catch-up contribution at 50: the compound interest calculator shows exactly how those late-career dollars accelerate your balance.
Before you bump your contribution
Raising your 401(k) deferral lowers your take-home pay today — the money never hits your checking account. Before changing your election, make sure your budget still works with the smaller paycheck. A quick way to check: enter your salary and the new contribution amount in our paycheck calculator to see your estimated net pay per period. If it still covers your bills with room to spare, increasing your contribution is one of the highest-value moves in personal finance.
One more reminder: these are IRS caps, not targets. The right contribution for you depends on your income, your employer's match (always grab the full match — it's free money), and your other financial priorities.
This article is for general information only and isn't financial or tax advice. Consider speaking with a qualified professional about your retirement plan.