🕷️ Crawler Inspector

URL Lookup

Direct Parameter Lookup

Raw Queries and Responses

1. Shard Calculation

Query:

Response:

Calculated Shard: 58 (from laksa037)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa058.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://www.empower.com/the-currency/work/401k-contribution-limits\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.empower.com/the-currency/work/401k-contribution-limits\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.empower.com\/the-currency\/work\/401k-contribution-limits","crawl_time":1775965268,"first_indexed_time":1676831823,"http_code":200,"src_unparsed":"com,empower!www,\/the-currency\/work\/401k-contribution-limits s443","src_root_hash":"8844141964895480058","history_drop_reason":null,"meta_title":"401(k) contribution limits for 2025 and 2026","meta_descriptions":["The IRS raised 401(k) limits for 2026, including bigger catch-up contributions for those age 50 or older"],"attrs_boilerpipe_text":"Key takeaways \nEmployees can invest more money into 401(k) plans in 2026, with contribution limits increasing from $23,500 in 2025 to $24,500 in 2026.\nThe limit on catch-up contributions increases to $8,000 for employees age 50 or over in 2026, while the higher catch-up limit for people ages 60 to 63 remains $11,250.\nThe definition of a “highly-compensated employee” – an individual who faces different limits on contributions – remains $160,000 for 2026.\nFor 2026, the employee 401(k) elective deferral limit is $24,500 (up from $23,500 in 2025). Catch-up contributions are generally capped at $8,000 for people age 50 or older, while the ages 60 to 63 super catch-up remains $11,250. Total employee + employer contributions are capped at $72,000 (before any catch-up amounts).\nAs you contemplate how to get started, consider how the \n401(k)\n contribution limits can fit into your overall income and savings goals. For example, you could have a trickier time budgeting from month to month because a larger portion of your income may go to saving for retirement. However, when you see how much of an impact saving can have on your retirement savings, you may decide that contributing the annual maximum 401(k) amount can benefit your retirement savings plan over the long-term.\nIn this piece, we’ll review the 401(k) contribution limits for 2025 and 2026. We’ll also go over employer-employee combination contribution limits and the highly compensated contribution limits. Finally, we’ll review traditional and Roth IRA contribution limits.\nRead more:\n \nRollover IRA taxes and the 60-day rule\n401(k) contribution limits in 2025 and 2026\nFirst, what are contribution limits? Contribution limits are set by the IRS and refer to the\namounts\nthat can be contributed to a 401(k) each year.\n1\nThe maximum deferral limit refers to the annual amount that an employee can defer from their pay to a 401(k) plan.  The maximum contribution amount, on the other hand, refers to the total amount of funds both the employee and employer can contribute during the year.  Total contributions cannot exceed 100% of an employee’s annual compensation.\nLet’s look at the \n401(k) contribution limits\n1\n in 2026 compared to 2025:\n401(k) plan limits\n2025\n2026\nDifference\nMaximum contribution limit\n$23,500\n$24,500\n$1,000\nCatch-up contributions for employees age 50 and over\n$7,500\n$8,000\n$500\nCatch-up contributions for employees aged 60 to 63\n$11,250\n$11,250\n$0\nMaximum contribution limit on combined employee and employer contributions\n$70,000\n$72,000\n$2,000\nMaximum contribution limit, including catch-up contributions (age 50+)\n$77,500\n$80,000\n$2,500\nMaximum contribution limit, including super catch-up contributions (ages 60 to 63)\n$81,250\n$83,250\n$2,000\nThese amounts also apply to 403(b) plans, and most 457(b), as well as the federal government’s Thrift Savings Plans. A \n403(b) plan\n is an employer-sponsored retirement plan that’s very similar to a 401(k) plan. The key difference is that 403(b) plans are offered by public schools, churches, and 501(c)(3) non-profit organizations. The IRS typically announces official limits for the coming year in late October or early November.\nRead more:\n \n401(k) vs 403(b): What's the difference?\nEmployer and employee 401(k) contribution limits\nYou cannot go over a specified limit for total plan contributions, which applies to the sum of elective deferrals, employer matching contributions, and employer non-elective contributions. We define all these below.\nElective deferrals:\n \nRefers\nto amounts of money you elect to defer from your pay and into your employer’s retirement plan.\n3\nEmployer matching contributions:\n \nRefers\nto contributions your employer makes to your retirement plan account if you contribute to the plan from your salary.\n4\nHere’s an example of a common 401(k) matching formula: 50 cents on the dollar up to 6% of the employee’s pay. Not taking advantage of the match may forgo employer contributions in your account, so it’s usually advantageous for you to contribute enough to get the match.\nEmployer non-elective contributions:\n When an employer\ncontributes\nto an employee in an employer-sponsored retirement plan (whether the employee contributes or not), these are employer non-elective contributions.\n5\n  They are generally also known as profit-sharing contributions. \nIn 2026, the maximum contribution limit on combined employee and employer contributions is\n$72,000\n, up from $70,000 in 2025.\n6\nRead more:\n \nWhat is 401(k) matching and how does it work?\nCatch up contributions for individuals age 50 and over\nIndividuals aged 50 and older are allowed to put more money into a 401(k) every year to help them make up for earlier years when they couldn't spare as much. In 2026, the catch-up contribution limit is\n$8,000\n.\n7\nYou can apply the catch-up contribution limit from the start of the year until the end of the year if you are 50 or older during the year. Let’s say you happened to turn 50 on December 31, 2026. You can still take advantage of the catch-up contribution for the entire year.\nCatch up contributions for individuals ages 60 to 63\nFor 2026, the higher catch-up contribution limit for individuals who attain ages 60 to 63 in 2026 remains\n$11,250\n(instead of the standard $8,000 catch-up amount).\n8\nHighly compensated employee 401(k) contribution limits\nHighly compensated employees face different limits than non-highly compensated employees.\nWho is a highly compensated employee (HCE) and how does being one affect your 401(k) contribution limits? It’s important to know the IRS rules for 401(k) contribution limits. If you own more than 5% of the interest in a business or receive compensation above a certain amount (more than\n$160,000\nin 2025 and the same in 2026, as determined by the IRS), you’re considered an HCE employee for 401(k) retirement plan purposes.\n9\nIn addition, the annual compensation limit that can be taken into account for certain retirement plan calculations is\n$360,000\nfor 2026 (up from $350,000 for 2025).\n10\nYou will have to follow more stringent contribution limits. You can take a look at the IRS\ntests\nthat impact HCE contribution limits.\n11\nDifferences between Roth 401(k) contribution types\nSome employers offer both a traditional pre-tax 401(k) and a Roth 401(k) option, but what’s the difference between each? Let’s walk through the differences between both account types so you can decide which type works best for you.\nRoth 401(k): A Roth 401(k) is a contribution option within an employer-sponsored savings plan that enables you to invest after-tax dollars for retirement. You pay income taxes on your contributions but don’t pay taxes when the amounts are distributed from the plan if you take withdrawals after you reach age 59½ and the account has been funded for at least five years. All your accumulated contributions and any earnings may be withdrawn tax free.\n*,**\nTraditional pre-tax 401(k): A traditional pre-tax 401(k) is a contribution option within an employer-sponsored plan that gives you the option to defer paying income tax on the amount you contribute for retirement. For example, let’s say you earn $50,000 and max out your retirement plan at $24,500. Assuming you have no other deductions, your taxable earnings will reduce from $50,000 to $25,500. ($50,000 – $24,500 = $25,500).\nWondering whether you should contribute to both? You might want to take a tax-diversified approach because it could allow you to diversify your retirement savings. You can contribute to both a Roth and a traditional pre-tax 401(k) plan if your total contribution (as an employee) doesn’t go over $23,500 in 2025 and $24,500 in 2026.\nIn addition to Roth and traditional pre-tax 401(k) plans, some employers also offer an “after-tax” contribution option, allowing you to save up to the total annual limit of $70,000 in 2025 and $72,000 in 2026. This means you can put away after-tax money and any investment growth is tax-deferred in your 401(k) account until withdrawal, at which point taxes would be due.\nRead more:\n \nWhat to know about 401(k) rollover options\nNew SECURE 2.0 Act rules for 2026\nNew for SECURE 2.0 Act catch-up rules:\nIRS\nguidance sets the Roth catch-up wage threshold at $150,000 (based on 2025 wages) for determining whether an individual’s catch-up contributions for 2026 must be designated as Roth contributions.\n12\nThe U.S. Treasury and the IRS also state that the final regulations’ Roth catch-up requirement generally applies to contributions in taxable years beginning after Dec. 31, 2026 (with good-faith early implementation permitted).\nThe bottom line\nIt’s important to pay attention to 401(k) contribution limits so you don’t go over the limit or contribute too little to meet your goals.\nWonder how your 401(k) balance compares to others who are close to your age? Check out where you fit in with your peers: Empower’s \naverage 401(k) balance by age\n.\nFinancial professionals suggest contributing regularly to your retirement savings plan. It’s also a good idea to at least contribute enough to your 401(k) that you receive the full match from your employer. Contributing even more beyond your employer’s match may help you build additional retirement savings, depending on your budget and goals.\nRemember, preparing for retirement should be part of your overall financial plan. You can use Empower's free and secure professional-grade \nonline financial tools\n to see all your accounts in one place, analyze your spending, and plan for long-term financial goals.\nFrequently asked questions about 401(k) contribution limits for 2026\nWhat is the 401(k) contribution limit for 2026?\nThe employee elective deferral limit for 2026 is $24,500.\nWhat is the 401(k) catch-up contribution limit for 2026 if you’re age 50 or older?\nFor 2026, the catch-up contribution limit that generally applies at age 50+ is $8,000.\nWhat is the special 401(k) catch-up limit for ages 60 to 63 in 2026?\nFor individuals who attain ages 60, 61, 62, or 63 in 2026, the catch-up limit is $11,250.\nWhat is the total 401(k) contribution limit (employee + employer) for 2026?\nThe defined contribution “annual additions” limit for 2026 is $72,000 (not counting catch-up contributions).\nDo Roth and traditional 401(k) contributions have different limits?\nNo — Roth and pretax 401(k) employee contributions share the same overall elective deferral limit (combined across contribution types).\nDo these 2026 limits also apply to 403(b) and 457 plans?\nYes — the IRS says the $24,500 employee limit applies to 401(k), 403(b), governmental 457 plans, and the Thrift Savings Plan for 2026.\nWhat is the Roth catch-up wage threshold tied to 2026 catch-up contributions?\nThe Roth catch-up wage threshold (based on 2025 wages) used to determine Roth catch-up treatment for 2026 is\n$150,000\n, so any employees who make $150,000 or more must designate the funds as Roth contributions.\n13\nWhen do the final Roth catch-up regulations generally apply?\nThe IRS says the final regulations generally apply to contributions in taxable years beginning after December 31, 2026, with a “reasonable, good-faith interpretation” standard before the applicability date.\n1 Internal Revenue Service, “Retirement topics – Contributions,” Accessed December 2025.\n2 Internal Revenue Service, “401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500,” Nov. 13, 2025.\n3 Internal Revenue Service, “Retirement topics – Contributions,” Accessed December 2025.\n4 Ibid.\n5 Ibid.\n6 Internal Revenue Service, “2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living,” Accessed December 2025.\n7 Internal Revenue Service, “401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500,” Nov. 13, 2025.\n8 Ibid.\n9 Internal Revenue Service, “2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living,” Accessed December 2025.\n10 Ibid.\n11 Employee Fiduciary, “401(k) Nondiscrimination Testing – Basics and Deadlines,” January 2024.\n12 Internal Revenue Service, “401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500,” Nov. 13, 2025.\n13 Internal Revenue Service, “2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living,” Accessed December 2025.\n*A withdrawal from a Roth account is not subject to federal taxation as long as it is qualified as defined under IRS regulations. However, state and local taxes may still apply.\n** Any earnings on Roth contributions will be taxed unless a withdrawal is a qualified distribution as defined by the IRS. For a withdrawal to be considered a qualified distribution, Roth contributions must have been in the account for at least five years, and the money withdrawn after age 59-1\/2, death, or disability. Current rules are subject to change. \nRO5076462-1225","attrs_markdown":"[Skip to main content](https:\/\/www.empower.com\/the-currency\/work\/401k-contribution-limits#main-content)\n\n×\n\n[Personal investors](https:\/\/www.empower.com\/personal-investors\/financial-service-overview \"Personal investors\")\n\n[Workplace retirement](https:\/\/www.empower.com\/workplace-retirement\/what-we-offer\/experience-focused-you \"Workplace retirement\")\n\n[Employers and plan sponsors](https:\/\/www.empower.com\/employers\/what-we-offer\/overview \"Employers and plan sponsors\")\n\n[Financial professionals](https:\/\/www.empower.com\/financial-professionals\/what-we-offer\/financial-professionals-overview \"Financial professionals\")\n\n## WM 2.0 - Blogs\n- [The Currency](https:\/\/www.empower.com\/the-currency \"The Currency\")\n- [Press center](https:\/\/www.empower.com\/press-center \"Press Center\")\n- [Investment Insights](https:\/\/www.empower.com\/investment-insights)\n\n[![The Currency homepage. Power up with today's financial news.](https:\/\/www.empower.com\/sites\/default\/files\/styles\/x_large_hq\/public\/image\/2024-10\/Untitled%20design%20%2820%29.png?itok=w3RK2nBd)](https:\/\/www.empower.com\/the-currency)\n\n[![Empower homepage](https:\/\/www.empower.com\/themes\/custom\/wealth_management_v2\/images\/branding\/logo-new-alt.svg)](https:\/\/www.empower.com\/ \"Home\")\n\nSearch\n\nClose\n\nMenu\n\n[![Empower homepage](https:\/\/www.empower.com\/themes\/custom\/wealth_management_v2\/images\/branding\/logo-new-alt.svg)](https:\/\/www.empower.com\/ \"Home\")\n\n**Saturday**, April 11, 2026\n\n## WM 2.0 Blog - Currency Categories\n- [Money](https:\/\/www.empower.com\/the-currency\/money \"Money\")\n- [Life](https:\/\/www.empower.com\/the-currency\/life \"Life\")\n- [Work](https:\/\/www.empower.com\/the-currency\/work \"Work\")\n- [Play](https:\/\/www.empower.com\/the-currency\/play \"Play\")\n\n[Glossary](https:\/\/www.empower.com\/the-currency\/glossary)\n\n## Currency Mobile Nav\n- The Currency\n  - [Money](https:\/\/www.empower.com\/the-currency\/money)\n  - [Life](https:\/\/www.empower.com\/the-currency\/life)\n  - [Work](https:\/\/www.empower.com\/the-currency\/work)\n  - [Play](https:\/\/www.empower.com\/the-currency\/play)\n  - [Glossary](https:\/\/www.empower.com\/the-currency\/glossary \"Glossary for Finance Terms\")\n- [Press Center](https:\/\/www.empower.com\/press-center)\n- [Investment Insights](https:\/\/www.empower.com\/investment-insights)\n\n## Breadcrumb\n1. [The Currency](https:\/\/www.empower.com\/the-currency)\n2. [Work](https:\/\/www.empower.com\/the-currency\/work)\n3. 401(k) contribution limits for 2025 and 2026\n\n# 401(k) contribution limits for 2025 and 2026\n# What are the 401(k) contribution limits for 2025 and 2026? The IRS raised 401(k) limits for 2026, including bigger catch-up contributions for those age 50 or older\n![](https:\/\/www.empower.com\/sites\/default\/files\/styles\/jpg_png_optimize\/public\/image\/2024-11\/MC-ART-WF-3679511-1024_739x416_GettyImages-1488464971.jpg?itok=m_mz-ftN)\n\n[Facebook](https:\/\/www.empower.com\/#facebook)\n\n[X](https:\/\/www.empower.com\/#x)\n\n[LinkedIn](https:\/\/www.empower.com\/#linkedin)\n\n[Print](https:\/\/www.empower.com\/#print)\n\n[Email](https:\/\/www.empower.com\/#email)\n#### By [The Currency editors](https:\/\/www.empower.com\/the-currency\/currency-editors)\n12\\.22.2025\n\n## Key takeaways\n- Employees can invest more money into 401(k) plans in 2026, with contribution limits increasing from \\$23,500 in 2025 to \\$24,500 in 2026.\n- The limit on catch-up contributions increases to \\$8,000 for employees age 50 or over in 2026, while the higher catch-up limit for people ages 60 to 63 remains \\$11,250.\n- The definition of a “highly-compensated employee” – an individual who faces different limits on contributions – remains \\$160,000 for 2026.\n\n*For 2026, the employee 401(k) elective deferral limit is \\$24,500 (up from \\$23,500 in 2025). Catch-up contributions are generally capped at \\$8,000 for people age 50 or older, while the ages 60 to 63 super catch-up remains \\$11,250. Total employee + employer contributions are capped at \\$72,000 (before any catch-up amounts).*\n\nAs you contemplate how to get started, consider how the [401(k)](https:\/\/www.empower.com\/the-currency\/work\/what-is-a-401k) contribution limits can fit into your overall income and savings goals. For example, you could have a trickier time budgeting from month to month because a larger portion of your income may go to saving for retirement. However, when you see how much of an impact saving can have on your retirement savings, you may decide that contributing the annual maximum 401(k) amount can benefit your retirement savings plan over the long-term.\n\nIn this piece, we’ll review the 401(k) contribution limits for 2025 and 2026. We’ll also go over employer-employee combination contribution limits and the highly compensated contribution limits. Finally, we’ll review traditional and Roth IRA contribution limits.\n\n***Read more:*** [*Rollover IRA taxes and the 60-day rule*](https:\/\/www.empower.com\/the-currency\/money\/rollover-ira-taxes-60-day-rule)\n\n## 401(k) contribution limits in 2025 and 2026\nFirst, what are contribution limits? Contribution limits are set by the IRS and refer to the [amounts](https:\/\/www.irs.gov\/retirement-plans\/plan-participant-employee\/retirement-topics-contributions) that can be contributed to a 401(k) each year.1 The maximum deferral limit refers to the annual amount that an employee can defer from their pay to a 401(k) plan. The maximum contribution amount, on the other hand, refers to the total amount of funds both the employee and employer can contribute during the year. Total contributions cannot exceed 100% of an employee’s annual compensation.\n\nLet’s look at the [401(k) contribution limits](https:\/\/www.irs.gov\/newsroom\/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500)1 in 2026 compared to 2025:\n\n|   |   |   |   |\n|---|---|---|---|\n| **401(k) plan limits** | **2025** | **2026** | **Difference** |\n| Maximum contribution limit | \\$23,500 | \\$24,500 | \\$1,000 |\n| Catch-up contributions for employees age 50 and over | \\$7,500 | \\$8,000 | \\$500 |\n| Catch-up contributions for employees aged 60 to 63 | \\$11,250 | \\$11,250 | \\$0 |\n| Maximum contribution limit on combined employee and employer contributions | \\$70,000 | \\$72,000 | \\$2,000 |\n| Maximum contribution limit, including catch-up contributions (age 50+) | \\$77,500 | \\$80,000 | \\$2,500 |\n| Maximum contribution limit, including super catch-up contributions (ages 60 to 63) | \\$81,250 | \\$83,250 | \\$2,000 |\n\nThese amounts also apply to 403(b) plans, and most 457(b), as well as the federal government’s Thrift Savings Plans. A [403(b) plan](https:\/\/www.empower.com\/the-currency\/work\/403b-plan) is an employer-sponsored retirement plan that’s very similar to a 401(k) plan. The key difference is that 403(b) plans are offered by public schools, churches, and 501(c)(3) non-profit organizations. The IRS typically announces official limits for the coming year in late October or early November.\n\n***Read more:*** [*401(k) vs 403(b): What's the difference?*](https:\/\/www.empower.com\/the-currency\/work\/difference-between-401k-and-403b)\n\n## Employer and employee 401(k) contribution limits\nYou cannot go over a specified limit for total plan contributions, which applies to the sum of elective deferrals, employer matching contributions, and employer non-elective contributions. We define all these below.\n\n- **Elective deferrals:** [Refers](https:\/\/www.irs.gov\/retirement-plans\/plan-participant-employee\/retirement-topics-contributions) to amounts of money you elect to defer from your pay and into your employer’s retirement plan.3\n- **Employer matching contributions:** [Refers](https:\/\/www.irs.gov\/retirement-plans\/plan-participant-employee\/retirement-topics-contributions) to contributions your employer makes to your retirement plan account if you contribute to the plan from your salary.4 Here’s an example of a common 401(k) matching formula: 50 cents on the dollar up to 6% of the employee’s pay. Not taking advantage of the match may forgo employer contributions in your account, so it’s usually advantageous for you to contribute enough to get the match.\n- **Employer non-elective contributions:** When an employer [contributes](https:\/\/www.irs.gov\/retirement-plans\/plan-participant-employee\/retirement-topics-contributions) to an employee in an employer-sponsored retirement plan (whether the employee contributes or not), these are employer non-elective contributions.5 They are generally also known as profit-sharing contributions.\n\nIn 2026, the maximum contribution limit on combined employee and employer contributions is [\\$72,000](https:\/\/www.irs.gov\/pub\/irs-drop\/n-25-67.pdf), up from \\$70,000 in 2025.6\n\n***Read more:*** [*What is 401(k) matching and how does it work?*](https:\/\/www.empower.com\/the-currency\/work\/how-does-401k-matching-work)\n\n## Catch up contributions for individuals age 50 and over\nIndividuals aged 50 and older are allowed to put more money into a 401(k) every year to help them make up for earlier years when they couldn't spare as much. In 2026, the catch-up contribution limit is [\\$8,000](https:\/\/www.irs.gov\/newsroom\/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500).7\n\nYou can apply the catch-up contribution limit from the start of the year until the end of the year if you are 50 or older during the year. Let’s say you happened to turn 50 on December 31, 2026. You can still take advantage of the catch-up contribution for the entire year.\n\n## Catch up contributions for individuals ages 60 to 63\nFor 2026, the higher catch-up contribution limit for individuals who attain ages 60 to 63 in 2026 remains [\\$11,250](https:\/\/www.irs.gov\/newsroom\/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500) (instead of the standard \\$8,000 catch-up amount).8\n\n## Highly compensated employee 401(k) contribution limits\nHighly compensated employees face different limits than non-highly compensated employees.\n\nWho is a highly compensated employee (HCE) and how does being one affect your 401(k) contribution limits? It’s important to know the IRS rules for 401(k) contribution limits. If you own more than 5% of the interest in a business or receive compensation above a certain amount (more than [\\$160,000](https:\/\/www.irs.gov\/pub\/irs-drop\/n-25-67.pdf) in 2025 and the same in 2026, as determined by the IRS), you’re considered an HCE employee for 401(k) retirement plan purposes.9 In addition, the annual compensation limit that can be taken into account for certain retirement plan calculations is [\\$360,000](https:\/\/www.irs.gov\/pub\/irs-drop\/n-25-67.pdf) for 2026 (up from \\$350,000 for 2025).10\n\nYou will have to follow more stringent contribution limits. You can take a look at the IRS [tests](https:\/\/www.employeefiduciary.com\/blog\/401k-nondiscrimination-testing-basics) that impact HCE contribution limits.11\n\n## Differences between Roth 401(k) contribution types\nSome employers offer both a traditional pre-tax 401(k) and a Roth 401(k) option, but what’s the difference between each? Let’s walk through the differences between both account types so you can decide which type works best for you.\n\n- Roth 401(k): A Roth 401(k) is a contribution option within an employer-sponsored savings plan that enables you to invest after-tax dollars for retirement. You pay income taxes on your contributions but don’t pay taxes when the amounts are distributed from the plan if you take withdrawals after you reach age 59½ and the account has been funded for at least five years. All your accumulated contributions and any earnings may be withdrawn tax free.\\*,\\*\\*\n- Traditional pre-tax 401(k): A traditional pre-tax 401(k) is a contribution option within an employer-sponsored plan that gives you the option to defer paying income tax on the amount you contribute for retirement. For example, let’s say you earn \\$50,000 and max out your retirement plan at \\$24,500. Assuming you have no other deductions, your taxable earnings will reduce from \\$50,000 to \\$25,500. (\\$50,000 – \\$24,500 = \\$25,500).\n- Wondering whether you should contribute to both? You might want to take a tax-diversified approach because it could allow you to diversify your retirement savings. You can contribute to both a Roth and a traditional pre-tax 401(k) plan if your total contribution (as an employee) doesn’t go over \\$23,500 in 2025 and \\$24,500 in 2026.\n- In addition to Roth and traditional pre-tax 401(k) plans, some employers also offer an “after-tax” contribution option, allowing you to save up to the total annual limit of \\$70,000 in 2025 and \\$72,000 in 2026. This means you can put away after-tax money and any investment growth is tax-deferred in your 401(k) account until withdrawal, at which point taxes would be due.\n\n***Read more:*** [*What to know about 401(k) rollover options*](https:\/\/www.empower.com\/the-currency\/work\/401k-rollover)\n\n## New SECURE 2.0 Act rules for 2026\nNew for SECURE 2.0 Act catch-up rules: [IRS](https:\/\/www.irs.gov\/newsroom\/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500) guidance sets the Roth catch-up wage threshold at \\$150,000 (based on 2025 wages) for determining whether an individual’s catch-up contributions for 2026 must be designated as Roth contributions.12 The U.S. Treasury and the IRS also state that the final regulations’ Roth catch-up requirement generally applies to contributions in taxable years beginning after Dec. 31, 2026 (with good-faith early implementation permitted).\n\n## The bottom line\nIt’s important to pay attention to 401(k) contribution limits so you don’t go over the limit or contribute too little to meet your goals.\n\nWonder how your 401(k) balance compares to others who are close to your age? Check out where you fit in with your peers: Empower’s [average 401(k) balance by age](https:\/\/www.empower.com\/the-currency\/life\/average-401k-balance-age).\n\nFinancial professionals suggest contributing regularly to your retirement savings plan. It’s also a good idea to at least contribute enough to your 401(k) that you receive the full match from your employer. Contributing even more beyond your employer’s match may help you build additional retirement savings, depending on your budget and goals.\n\nRemember, preparing for retirement should be part of your overall financial plan. You can use Empower's free and secure professional-grade [online financial tools](https:\/\/www.empower.com\/tools) to see all your accounts in one place, analyze your spending, and plan for long-term financial goals.\n\n## Frequently asked questions about 401(k) contribution limits for 2026\n### What is the 401(k) contribution limit for 2026?\nThe employee elective deferral limit for 2026 is \\$24,500.\n\n### What is the 401(k) catch-up contribution limit for 2026 if you’re age 50 or older?\nFor 2026, the catch-up contribution limit that generally applies at age 50+ is \\$8,000.\n\n### What is the special 401(k) catch-up limit for ages 60 to 63 in 2026?\nFor individuals who attain ages 60, 61, 62, or 63 in 2026, the catch-up limit is \\$11,250.\n\n### What is the total 401(k) contribution limit (employee + employer) for 2026?\nThe defined contribution “annual additions” limit for 2026 is \\$72,000 (not counting catch-up contributions).\n\n### Do Roth and traditional 401(k) contributions have different limits?\nNo — Roth and pretax 401(k) employee contributions share the same overall elective deferral limit (combined across contribution types).\n\n### Do these 2026 limits also apply to 403(b) and 457 plans?\nYes — the IRS says the \\$24,500 employee limit applies to 401(k), 403(b), governmental 457 plans, and the Thrift Savings Plan for 2026.\n\n### What is the Roth catch-up wage threshold tied to 2026 catch-up contributions?\nThe Roth catch-up wage threshold (based on 2025 wages) used to determine Roth catch-up treatment for 2026 is [\\$150,000](https:\/\/www.irs.gov\/pub\/irs-drop\/n-25-67.pdf), so any employees who make \\$150,000 or more must designate the funds as Roth contributions.13\n\n### When do the final Roth catch-up regulations generally apply?\nThe IRS says the final regulations generally apply to contributions in taxable years beginning after December 31, 2026, with a “reasonable, good-faith interpretation” standard before the applicability date.\n\n## Need help navigating your finances?\nOur free money tools bring your accounts together in one place so you can monitor your investments and plan for your big financial goals.\n\n[Sign up](https:\/\/www.empower.com\/onboarding-v2)\n\n## **Get financially happy**\nPut your money to work for life and play\n\n[Start here](https:\/\/www.empower.com\/onboarding-v2)\n\n1 Internal Revenue Service, “Retirement topics – Contributions,” Accessed December 2025.\n\n2 Internal Revenue Service, “401(k) limit increases to \\$24,500 for 2026, IRA limit increases to \\$7,500,” Nov. 13, 2025.\n\n3 Internal Revenue Service, “Retirement topics – Contributions,” Accessed December 2025.\n\n4 Ibid.\n\n5 Ibid.\n\n6 Internal Revenue Service, “2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living,” Accessed December 2025.\n\n7 Internal Revenue Service, “401(k) limit increases to \\$24,500 for 2026, IRA limit increases to \\$7,500,” Nov. 13, 2025.\n\n8 Ibid.\n\n9 Internal Revenue Service, “2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living,” Accessed December 2025.\n\n10 Ibid.\n\n11 Employee Fiduciary, “401(k) Nondiscrimination Testing – Basics and Deadlines,” January 2024.\n\n12 Internal Revenue Service, “401(k) limit increases to \\$24,500 for 2026, IRA limit increases to \\$7,500,” Nov. 13, 2025.\n\n13 Internal Revenue Service, “2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living,” Accessed December 2025.\n\n*\\*A withdrawal from a Roth account is not subject to federal taxation as long as it is qualified as defined under IRS regulations. However, state and local taxes may still apply.*\n\n*\\*\\* Any earnings on Roth contributions will be taxed unless a withdrawal is a qualified distribution as defined by the IRS. For a withdrawal to be considered a qualified distribution, Roth contributions must have been in the account for at least five years, and the money withdrawn after age 59-1\/2, death, or disability. 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All rights reserved.\n\n## Empulsify Backport Footer - Legal\n- [Security center](https:\/\/participant.empower-retirement.com\/participant\/#\/articles\/securityCenter?)\n- [Accessibility](https:\/\/participant.empower-retirement.com\/participant\/#\/articles\/accessibility?)\n- [System requirements](https:\/\/www.empower.com\/system-requirements)\n- [Privacy](https:\/\/www.empower.com\/privacy)\n- [Terms and conditions](https:\/\/www.empower.com\/terms)\n- [Business continuity plan](https:\/\/www.empower.com\/business-continuity)\n- [Market timing and excessive trading policies](https:\/\/www.empower.com\/market-timing-and-trading)\n- [Investor education and protection](https:\/\/www.empower.com\/broker-check)\n- [Form CRS & Reg BI Disclosure](https:\/\/www.empower.com\/reg-bi-and-form-crs)\n- [Empower representative compensation](https:\/\/www.empower.com\/rep-comp-disclosure)\n- Manage cookies\n- [SEC Rule 605-606](https:\/\/www.empower.com\/sec-rule-605-rule-606)\n\n✓\n\nThanks for sharing\\!\n\n[AddToAny](https:\/\/www.addtoany.com\/ \"Share Buttons\")\n\n[More…](https:\/\/www.empower.com\/the-currency\/work\/401k-contribution-limits#addtoany \"Show all\")","attrs_readable_markdown":"## Key takeaways\n- Employees can invest more money into 401(k) plans in 2026, with contribution limits increasing from \\$23,500 in 2025 to \\$24,500 in 2026.\n- The limit on catch-up contributions increases to \\$8,000 for employees age 50 or over in 2026, while the higher catch-up limit for people ages 60 to 63 remains \\$11,250.\n- The definition of a “highly-compensated employee” – an individual who faces different limits on contributions – remains \\$160,000 for 2026.\n\n*For 2026, the employee 401(k) elective deferral limit is \\$24,500 (up from \\$23,500 in 2025). Catch-up contributions are generally capped at \\$8,000 for people age 50 or older, while the ages 60 to 63 super catch-up remains \\$11,250. Total employee + employer contributions are capped at \\$72,000 (before any catch-up amounts).*\n\nAs you contemplate how to get started, consider how the [401(k)](https:\/\/www.empower.com\/the-currency\/work\/what-is-a-401k) contribution limits can fit into your overall income and savings goals. For example, you could have a trickier time budgeting from month to month because a larger portion of your income may go to saving for retirement. However, when you see how much of an impact saving can have on your retirement savings, you may decide that contributing the annual maximum 401(k) amount can benefit your retirement savings plan over the long-term.\n\nIn this piece, we’ll review the 401(k) contribution limits for 2025 and 2026. We’ll also go over employer-employee combination contribution limits and the highly compensated contribution limits. Finally, we’ll review traditional and Roth IRA contribution limits.\n\n***Read more:*** [*Rollover IRA taxes and the 60-day rule*](https:\/\/www.empower.com\/the-currency\/money\/rollover-ira-taxes-60-day-rule)\n\n## 401(k) contribution limits in 2025 and 2026\nFirst, what are contribution limits? Contribution limits are set by the IRS and refer to the [amounts](https:\/\/www.irs.gov\/retirement-plans\/plan-participant-employee\/retirement-topics-contributions) that can be contributed to a 401(k) each year.1 The maximum deferral limit refers to the annual amount that an employee can defer from their pay to a 401(k) plan. The maximum contribution amount, on the other hand, refers to the total amount of funds both the employee and employer can contribute during the year. Total contributions cannot exceed 100% of an employee’s annual compensation.\n\nLet’s look at the [401(k) contribution limits](https:\/\/www.irs.gov\/newsroom\/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500)1 in 2026 compared to 2025:\n\n|   |   |   |   |\n|---|---|---|---|\n| **401(k) plan limits** | **2025** | **2026** | **Difference** |\n| Maximum contribution limit | \\$23,500 | \\$24,500 | \\$1,000 |\n| Catch-up contributions for employees age 50 and over | \\$7,500 | \\$8,000 | \\$500 |\n| Catch-up contributions for employees aged 60 to 63 | \\$11,250 | \\$11,250 | \\$0 |\n| Maximum contribution limit on combined employee and employer contributions | \\$70,000 | \\$72,000 | \\$2,000 |\n| Maximum contribution limit, including catch-up contributions (age 50+) | \\$77,500 | \\$80,000 | \\$2,500 |\n| Maximum contribution limit, including super catch-up contributions (ages 60 to 63) | \\$81,250 | \\$83,250 | \\$2,000 |\n\nThese amounts also apply to 403(b) plans, and most 457(b), as well as the federal government’s Thrift Savings Plans. A [403(b) plan](https:\/\/www.empower.com\/the-currency\/work\/403b-plan) is an employer-sponsored retirement plan that’s very similar to a 401(k) plan. The key difference is that 403(b) plans are offered by public schools, churches, and 501(c)(3) non-profit organizations. The IRS typically announces official limits for the coming year in late October or early November.\n\n***Read more:*** [*401(k) vs 403(b): What's the difference?*](https:\/\/www.empower.com\/the-currency\/work\/difference-between-401k-and-403b)\n\n## Employer and employee 401(k) contribution limits\nYou cannot go over a specified limit for total plan contributions, which applies to the sum of elective deferrals, employer matching contributions, and employer non-elective contributions. We define all these below.\n\n- **Elective deferrals:** [Refers](https:\/\/www.irs.gov\/retirement-plans\/plan-participant-employee\/retirement-topics-contributions) to amounts of money you elect to defer from your pay and into your employer’s retirement plan.3\n- **Employer matching contributions:** [Refers](https:\/\/www.irs.gov\/retirement-plans\/plan-participant-employee\/retirement-topics-contributions) to contributions your employer makes to your retirement plan account if you contribute to the plan from your salary.4 Here’s an example of a common 401(k) matching formula: 50 cents on the dollar up to 6% of the employee’s pay. Not taking advantage of the match may forgo employer contributions in your account, so it’s usually advantageous for you to contribute enough to get the match.\n- **Employer non-elective contributions:** When an employer [contributes](https:\/\/www.irs.gov\/retirement-plans\/plan-participant-employee\/retirement-topics-contributions) to an employee in an employer-sponsored retirement plan (whether the employee contributes or not), these are employer non-elective contributions.5 They are generally also known as profit-sharing contributions.\n\nIn 2026, the maximum contribution limit on combined employee and employer contributions is [\\$72,000](https:\/\/www.irs.gov\/pub\/irs-drop\/n-25-67.pdf), up from \\$70,000 in 2025.6\n\n***Read more:*** [*What is 401(k) matching and how does it work?*](https:\/\/www.empower.com\/the-currency\/work\/how-does-401k-matching-work)\n\n## Catch up contributions for individuals age 50 and over\nIndividuals aged 50 and older are allowed to put more money into a 401(k) every year to help them make up for earlier years when they couldn't spare as much. In 2026, the catch-up contribution limit is [\\$8,000](https:\/\/www.irs.gov\/newsroom\/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500).7\n\nYou can apply the catch-up contribution limit from the start of the year until the end of the year if you are 50 or older during the year. Let’s say you happened to turn 50 on December 31, 2026. You can still take advantage of the catch-up contribution for the entire year.\n\n## Catch up contributions for individuals ages 60 to 63\nFor 2026, the higher catch-up contribution limit for individuals who attain ages 60 to 63 in 2026 remains [\\$11,250](https:\/\/www.irs.gov\/newsroom\/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500) (instead of the standard \\$8,000 catch-up amount).8\n\n## Highly compensated employee 401(k) contribution limits\nHighly compensated employees face different limits than non-highly compensated employees.\n\nWho is a highly compensated employee (HCE) and how does being one affect your 401(k) contribution limits? It’s important to know the IRS rules for 401(k) contribution limits. If you own more than 5% of the interest in a business or receive compensation above a certain amount (more than [\\$160,000](https:\/\/www.irs.gov\/pub\/irs-drop\/n-25-67.pdf) in 2025 and the same in 2026, as determined by the IRS), you’re considered an HCE employee for 401(k) retirement plan purposes.9 In addition, the annual compensation limit that can be taken into account for certain retirement plan calculations is [\\$360,000](https:\/\/www.irs.gov\/pub\/irs-drop\/n-25-67.pdf) for 2026 (up from \\$350,000 for 2025).10\n\nYou will have to follow more stringent contribution limits. You can take a look at the IRS [tests](https:\/\/www.employeefiduciary.com\/blog\/401k-nondiscrimination-testing-basics) that impact HCE contribution limits.11\n\n## Differences between Roth 401(k) contribution types\nSome employers offer both a traditional pre-tax 401(k) and a Roth 401(k) option, but what’s the difference between each? Let’s walk through the differences between both account types so you can decide which type works best for you.\n\n- Roth 401(k): A Roth 401(k) is a contribution option within an employer-sponsored savings plan that enables you to invest after-tax dollars for retirement. You pay income taxes on your contributions but don’t pay taxes when the amounts are distributed from the plan if you take withdrawals after you reach age 59½ and the account has been funded for at least five years. All your accumulated contributions and any earnings may be withdrawn tax free.\\*,\\*\\*\n- Traditional pre-tax 401(k): A traditional pre-tax 401(k) is a contribution option within an employer-sponsored plan that gives you the option to defer paying income tax on the amount you contribute for retirement. For example, let’s say you earn \\$50,000 and max out your retirement plan at \\$24,500. Assuming you have no other deductions, your taxable earnings will reduce from \\$50,000 to \\$25,500. (\\$50,000 – \\$24,500 = \\$25,500).\n- Wondering whether you should contribute to both? You might want to take a tax-diversified approach because it could allow you to diversify your retirement savings. You can contribute to both a Roth and a traditional pre-tax 401(k) plan if your total contribution (as an employee) doesn’t go over \\$23,500 in 2025 and \\$24,500 in 2026.\n- In addition to Roth and traditional pre-tax 401(k) plans, some employers also offer an “after-tax” contribution option, allowing you to save up to the total annual limit of \\$70,000 in 2025 and \\$72,000 in 2026. This means you can put away after-tax money and any investment growth is tax-deferred in your 401(k) account until withdrawal, at which point taxes would be due.\n\n***Read more:*** [*What to know about 401(k) rollover options*](https:\/\/www.empower.com\/the-currency\/work\/401k-rollover)\n\n## New SECURE 2.0 Act rules for 2026\nNew for SECURE 2.0 Act catch-up rules: [IRS](https:\/\/www.irs.gov\/newsroom\/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500) guidance sets the Roth catch-up wage threshold at \\$150,000 (based on 2025 wages) for determining whether an individual’s catch-up contributions for 2026 must be designated as Roth contributions.12 The U.S. Treasury and the IRS also state that the final regulations’ Roth catch-up requirement generally applies to contributions in taxable years beginning after Dec. 31, 2026 (with good-faith early implementation permitted).\n\n## The bottom line\nIt’s important to pay attention to 401(k) contribution limits so you don’t go over the limit or contribute too little to meet your goals.\n\nWonder how your 401(k) balance compares to others who are close to your age? Check out where you fit in with your peers: Empower’s [average 401(k) balance by age](https:\/\/www.empower.com\/the-currency\/life\/average-401k-balance-age).\n\nFinancial professionals suggest contributing regularly to your retirement savings plan. It’s also a good idea to at least contribute enough to your 401(k) that you receive the full match from your employer. Contributing even more beyond your employer’s match may help you build additional retirement savings, depending on your budget and goals.\n\nRemember, preparing for retirement should be part of your overall financial plan. You can use Empower's free and secure professional-grade [online financial tools](https:\/\/www.empower.com\/tools) to see all your accounts in one place, analyze your spending, and plan for long-term financial goals.\n\n## Frequently asked questions about 401(k) contribution limits for 2026\n### What is the 401(k) contribution limit for 2026?\nThe employee elective deferral limit for 2026 is \\$24,500.\n\n### What is the 401(k) catch-up contribution limit for 2026 if you’re age 50 or older?\nFor 2026, the catch-up contribution limit that generally applies at age 50+ is \\$8,000.\n\n### What is the special 401(k) catch-up limit for ages 60 to 63 in 2026?\nFor individuals who attain ages 60, 61, 62, or 63 in 2026, the catch-up limit is \\$11,250.\n\n### What is the total 401(k) contribution limit (employee + employer) for 2026?\nThe defined contribution “annual additions” limit for 2026 is \\$72,000 (not counting catch-up contributions).\n\n### Do Roth and traditional 401(k) contributions have different limits?\nNo — Roth and pretax 401(k) employee contributions share the same overall elective deferral limit (combined across contribution types).\n\n### Do these 2026 limits also apply to 403(b) and 457 plans?\nYes — the IRS says the \\$24,500 employee limit applies to 401(k), 403(b), governmental 457 plans, and the Thrift Savings Plan for 2026.\n\n### What is the Roth catch-up wage threshold tied to 2026 catch-up contributions?\nThe Roth catch-up wage threshold (based on 2025 wages) used to determine Roth catch-up treatment for 2026 is [\\$150,000](https:\/\/www.irs.gov\/pub\/irs-drop\/n-25-67.pdf), so any employees who make \\$150,000 or more must designate the funds as Roth contributions.13\n\n### When do the final Roth catch-up regulations generally apply?\nThe IRS says the final regulations generally apply to contributions in taxable years beginning after December 31, 2026, with a “reasonable, good-faith interpretation” standard before the applicability date.\n\n1 Internal Revenue Service, “Retirement topics – Contributions,” Accessed December 2025.\n\n2 Internal Revenue Service, “401(k) limit increases to \\$24,500 for 2026, IRA limit increases to \\$7,500,” Nov. 13, 2025.\n\n3 Internal Revenue Service, “Retirement topics – Contributions,” Accessed December 2025.\n\n4 Ibid.\n\n5 Ibid.\n\n6 Internal Revenue Service, “2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living,” Accessed December 2025.\n\n7 Internal Revenue Service, “401(k) limit increases to \\$24,500 for 2026, IRA limit increases to \\$7,500,” Nov. 13, 2025.\n\n8 Ibid.\n\n9 Internal Revenue Service, “2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living,” Accessed December 2025.\n\n10 Ibid.\n\n11 Employee Fiduciary, “401(k) Nondiscrimination Testing – Basics and Deadlines,” January 2024.\n\n12 Internal Revenue Service, “401(k) limit increases to \\$24,500 for 2026, IRA limit increases to \\$7,500,” Nov. 13, 2025.\n\n13 Internal Revenue Service, “2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living,” Accessed December 2025.\n\n*\\*A withdrawal from a Roth account is not subject to federal taxation as long as it is qualified as defined under IRS regulations. However, state and local taxes may still apply.*\n\n*\\*\\* Any earnings on Roth contributions will be taxed unless a withdrawal is a qualified distribution as defined by the IRS. For a withdrawal to be considered a qualified distribution, Roth contributions must have been in the account for at least five years, and the money withdrawn after age 59-1\/2, death, or disability. Current rules are subject to change.*\n\nRO5076462-1225","meta_canonical":null}

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URL	https://www.empower.com/the-currency/work/401k-contribution-limits
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Meta Title	401(k) contribution limits for 2025 and 2026
Meta Description	The IRS raised 401(k) limits for 2026, including bigger catch-up contributions for those age 50 or older
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Boilerpipe Text	Key takeaways Employees can invest more money into 401(k) plans in 2026, with contribution limits increasing from $23,500 in 2025 to $24,500 in 2026. The limit on catch-up contributions increases to $8,000 for employees age 50 or over in 2026, while the higher catch-up limit for people ages 60 to 63 remains $11,250. The definition of a “highly-compensated employee” – an individual who faces different limits on contributions – remains $160,000 for 2026. For 2026, the employee 401(k) elective deferral limit is $24,500 (up from $23,500 in 2025). Catch-up contributions are generally capped at $8,000 for people age 50 or older, while the ages 60 to 63 super catch-up remains $11,250. Total employee + employer contributions are capped at $72,000 (before any catch-up amounts). As you contemplate how to get started, consider how the 401(k) contribution limits can fit into your overall income and savings goals. For example, you could have a trickier time budgeting from month to month because a larger portion of your income may go to saving for retirement. However, when you see how much of an impact saving can have on your retirement savings, you may decide that contributing the annual maximum 401(k) amount can benefit your retirement savings plan over the long-term. In this piece, we’ll review the 401(k) contribution limits for 2025 and 2026. We’ll also go over employer-employee combination contribution limits and the highly compensated contribution limits. Finally, we’ll review traditional and Roth IRA contribution limits. Read more: Rollover IRA taxes and the 60-day rule 401(k) contribution limits in 2025 and 2026 First, what are contribution limits? Contribution limits are set by the IRS and refer to the amounts that can be contributed to a 401(k) each year. 1 The maximum deferral limit refers to the annual amount that an employee can defer from their pay to a 401(k) plan. The maximum contribution amount, on the other hand, refers to the total amount of funds both the employee and employer can contribute during the year. Total contributions cannot exceed 100% of an employee’s annual compensation. Let’s look at the 401(k) contribution limits 1 in 2026 compared to 2025: 401(k) plan limits 2025 2026 Difference Maximum contribution limit $23,500 $24,500 $1,000 Catch-up contributions for employees age 50 and over $7,500 $8,000 $500 Catch-up contributions for employees aged 60 to 63 $11,250 $11,250 $0 Maximum contribution limit on combined employee and employer contributions $70,000 $72,000 $2,000 Maximum contribution limit, including catch-up contributions (age 50+) $77,500 $80,000 $2,500 Maximum contribution limit, including super catch-up contributions (ages 60 to 63) $81,250 $83,250 $2,000 These amounts also apply to 403(b) plans, and most 457(b), as well as the federal government’s Thrift Savings Plans. A 403(b) plan is an employer-sponsored retirement plan that’s very similar to a 401(k) plan. The key difference is that 403(b) plans are offered by public schools, churches, and 501(c)(3) non-profit organizations. The IRS typically announces official limits for the coming year in late October or early November. Read more: 401(k) vs 403(b): What's the difference? Employer and employee 401(k) contribution limits You cannot go over a specified limit for total plan contributions, which applies to the sum of elective deferrals, employer matching contributions, and employer non-elective contributions. We define all these below. Elective deferrals: Refers to amounts of money you elect to defer from your pay and into your employer’s retirement plan. 3 Employer matching contributions: Refers to contributions your employer makes to your retirement plan account if you contribute to the plan from your salary. 4 Here’s an example of a common 401(k) matching formula: 50 cents on the dollar up to 6% of the employee’s pay. Not taking advantage of the match may forgo employer contributions in your account, so it’s usually advantageous for you to contribute enough to get the match. Employer non-elective contributions: When an employer contributes to an employee in an employer-sponsored retirement plan (whether the employee contributes or not), these are employer non-elective contributions. 5 They are generally also known as profit-sharing contributions. In 2026, the maximum contribution limit on combined employee and employer contributions is $72,000 , up from $70,000 in 2025. 6 Read more: What is 401(k) matching and how does it work? Catch up contributions for individuals age 50 and over Individuals aged 50 and older are allowed to put more money into a 401(k) every year to help them make up for earlier years when they couldn't spare as much. In 2026, the catch-up contribution limit is $8,000 . 7 You can apply the catch-up contribution limit from the start of the year until the end of the year if you are 50 or older during the year. Let’s say you happened to turn 50 on December 31, 2026. You can still take advantage of the catch-up contribution for the entire year. Catch up contributions for individuals ages 60 to 63 For 2026, the higher catch-up contribution limit for individuals who attain ages 60 to 63 in 2026 remains $11,250 (instead of the standard $8,000 catch-up amount). 8 Highly compensated employee 401(k) contribution limits Highly compensated employees face different limits than non-highly compensated employees. Who is a highly compensated employee (HCE) and how does being one affect your 401(k) contribution limits? It’s important to know the IRS rules for 401(k) contribution limits. If you own more than 5% of the interest in a business or receive compensation above a certain amount (more than $160,000 in 2025 and the same in 2026, as determined by the IRS), you’re considered an HCE employee for 401(k) retirement plan purposes. 9 In addition, the annual compensation limit that can be taken into account for certain retirement plan calculations is $360,000 for 2026 (up from $350,000 for 2025). 10 You will have to follow more stringent contribution limits. You can take a look at the IRS tests that impact HCE contribution limits. 11 Differences between Roth 401(k) contribution types Some employers offer both a traditional pre-tax 401(k) and a Roth 401(k) option, but what’s the difference between each? Let’s walk through the differences between both account types so you can decide which type works best for you. Roth 401(k): A Roth 401(k) is a contribution option within an employer-sponsored savings plan that enables you to invest after-tax dollars for retirement. You pay income taxes on your contributions but don’t pay taxes when the amounts are distributed from the plan if you take withdrawals after you reach age 59½ and the account has been funded for at least five years. All your accumulated contributions and any earnings may be withdrawn tax free. ,* Traditional pre-tax 401(k): A traditional pre-tax 401(k) is a contribution option within an employer-sponsored plan that gives you the option to defer paying income tax on the amount you contribute for retirement. For example, let’s say you earn $50,000 and max out your retirement plan at $24,500. Assuming you have no other deductions, your taxable earnings will reduce from $50,000 to $25,500. ($50,000 – $24,500 = $25,500). Wondering whether you should contribute to both? You might want to take a tax-diversified approach because it could allow you to diversify your retirement savings. You can contribute to both a Roth and a traditional pre-tax 401(k) plan if your total contribution (as an employee) doesn’t go over $23,500 in 2025 and $24,500 in 2026. In addition to Roth and traditional pre-tax 401(k) plans, some employers also offer an “after-tax” contribution option, allowing you to save up to the total annual limit of $70,000 in 2025 and $72,000 in 2026. This means you can put away after-tax money and any investment growth is tax-deferred in your 401(k) account until withdrawal, at which point taxes would be due. Read more: What to know about 401(k) rollover options New SECURE 2.0 Act rules for 2026 New for SECURE 2.0 Act catch-up rules: IRS guidance sets the Roth catch-up wage threshold at $150,000 (based on 2025 wages) for determining whether an individual’s catch-up contributions for 2026 must be designated as Roth contributions. 12 The U.S. Treasury and the IRS also state that the final regulations’ Roth catch-up requirement generally applies to contributions in taxable years beginning after Dec. 31, 2026 (with good-faith early implementation permitted). The bottom line It’s important to pay attention to 401(k) contribution limits so you don’t go over the limit or contribute too little to meet your goals. Wonder how your 401(k) balance compares to others who are close to your age? Check out where you fit in with your peers: Empower’s average 401(k) balance by age . Financial professionals suggest contributing regularly to your retirement savings plan. It’s also a good idea to at least contribute enough to your 401(k) that you receive the full match from your employer. Contributing even more beyond your employer’s match may help you build additional retirement savings, depending on your budget and goals. Remember, preparing for retirement should be part of your overall financial plan. You can use Empower's free and secure professional-grade online financial tools to see all your accounts in one place, analyze your spending, and plan for long-term financial goals. Frequently asked questions about 401(k) contribution limits for 2026 What is the 401(k) contribution limit for 2026? The employee elective deferral limit for 2026 is $24,500. What is the 401(k) catch-up contribution limit for 2026 if you’re age 50 or older? For 2026, the catch-up contribution limit that generally applies at age 50+ is $8,000. What is the special 401(k) catch-up limit for ages 60 to 63 in 2026? For individuals who attain ages 60, 61, 62, or 63 in 2026, the catch-up limit is $11,250. What is the total 401(k) contribution limit (employee + employer) for 2026? The defined contribution “annual additions” limit for 2026 is $72,000 (not counting catch-up contributions). Do Roth and traditional 401(k) contributions have different limits? No — Roth and pretax 401(k) employee contributions share the same overall elective deferral limit (combined across contribution types). Do these 2026 limits also apply to 403(b) and 457 plans? Yes — the IRS says the $24,500 employee limit applies to 401(k), 403(b), governmental 457 plans, and the Thrift Savings Plan for 2026. What is the Roth catch-up wage threshold tied to 2026 catch-up contributions? The Roth catch-up wage threshold (based on 2025 wages) used to determine Roth catch-up treatment for 2026 is $150,000 , so any employees who make $150,000 or more must designate the funds as Roth contributions. 13 When do the final Roth catch-up regulations generally apply? The IRS says the final regulations generally apply to contributions in taxable years beginning after December 31, 2026, with a “reasonable, good-faith interpretation” standard before the applicability date. 1 Internal Revenue Service, “Retirement topics – Contributions,” Accessed December 2025. 2 Internal Revenue Service, “401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500,” Nov. 13, 2025. 3 Internal Revenue Service, “Retirement topics – Contributions,” Accessed December 2025. 4 Ibid. 5 Ibid. 6 Internal Revenue Service, “2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living,” Accessed December 2025. 7 Internal Revenue Service, “401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500,” Nov. 13, 2025. 8 Ibid. 9 Internal Revenue Service, “2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living,” Accessed December 2025. 10 Ibid. 11 Employee Fiduciary, “401(k) Nondiscrimination Testing – Basics and Deadlines,” January 2024. 12 Internal Revenue Service, “401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500,” Nov. 13, 2025. 13 Internal Revenue Service, “2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living,” Accessed December 2025. A withdrawal from a Roth account is not subject to federal taxation as long as it is qualified as defined under IRS regulations. However, state and local taxes may still apply. * Any earnings on Roth contributions will be taxed unless a withdrawal is a qualified distribution as defined by the IRS. For a withdrawal to be considered a qualified distribution, Roth contributions must have been in the account for at least five years, and the money withdrawn after age 59-1/2, death, or disability. Current rules are subject to change. RO5076462-1225
Markdown	[Skip to main content](https://www.empower.com/the-currency/work/401k-contribution-limits#main-content) × [Personal investors](https://www.empower.com/personal-investors/financial-service-overview "Personal investors") [Workplace retirement](https://www.empower.com/workplace-retirement/what-we-offer/experience-focused-you "Workplace retirement") [Employers and plan sponsors](https://www.empower.com/employers/what-we-offer/overview "Employers and plan sponsors") [Financial professionals](https://www.empower.com/financial-professionals/what-we-offer/financial-professionals-overview "Financial professionals") ## WM 2.0 - Blogs - [The Currency](https://www.empower.com/the-currency "The Currency") - [Press center](https://www.empower.com/press-center "Press Center") - [Investment Insights](https://www.empower.com/investment-insights) [![The Currency homepage. 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[The Currency](https://www.empower.com/the-currency) 2. [Work](https://www.empower.com/the-currency/work) 3. 401(k) contribution limits for 2025 and 2026 # 401(k) contribution limits for 2025 and 2026 # What are the 401(k) contribution limits for 2025 and 2026? The IRS raised 401(k) limits for 2026, including bigger catch-up contributions for those age 50 or older ![](https://www.empower.com/sites/default/files/styles/jpg_png_optimize/public/image/2024-11/MC-ART-WF-3679511-1024_739x416_GettyImages-1488464971.jpg?itok=m_mz-ftN) [Facebook](https://www.empower.com/#facebook) [X](https://www.empower.com/#x) [LinkedIn](https://www.empower.com/#linkedin) [Print](https://www.empower.com/#print) [Email](https://www.empower.com/#email) #### By [The Currency editors](https://www.empower.com/the-currency/currency-editors) 12\.22.2025 ## Key takeaways - Employees can invest more money into 401(k) plans in 2026, with contribution limits increasing from \$23,500 in 2025 to \$24,500 in 2026. - The limit on catch-up contributions increases to \$8,000 for employees age 50 or over in 2026, while the higher catch-up limit for people ages 60 to 63 remains \$11,250. - The definition of a “highly-compensated employee” – an individual who faces different limits on contributions – remains \$160,000 for 2026. For 2026, the employee 401(k) elective deferral limit is \$24,500 (up from \$23,500 in 2025). Catch-up contributions are generally capped at \$8,000 for people age 50 or older, while the ages 60 to 63 super catch-up remains \$11,250. Total employee + employer contributions are capped at \$72,000 (before any catch-up amounts). As you contemplate how to get started, consider how the [401(k)](https://www.empower.com/the-currency/work/what-is-a-401k) contribution limits can fit into your overall income and savings goals. For example, you could have a trickier time budgeting from month to month because a larger portion of your income may go to saving for retirement. However, when you see how much of an impact saving can have on your retirement savings, you may decide that contributing the annual maximum 401(k) amount can benefit your retirement savings plan over the long-term. In this piece, we’ll review the 401(k) contribution limits for 2025 and 2026. We’ll also go over employer-employee combination contribution limits and the highly compensated contribution limits. Finally, we’ll review traditional and Roth IRA contribution limits. *Read more:* [Rollover IRA taxes and the 60-day rule](https://www.empower.com/the-currency/money/rollover-ira-taxes-60-day-rule) ## 401(k) contribution limits in 2025 and 2026 First, what are contribution limits? Contribution limits are set by the IRS and refer to the [amounts](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-contributions) that can be contributed to a 401(k) each year.1 The maximum deferral limit refers to the annual amount that an employee can defer from their pay to a 401(k) plan. The maximum contribution amount, on the other hand, refers to the total amount of funds both the employee and employer can contribute during the year. Total contributions cannot exceed 100% of an employee’s annual compensation. Let’s look at the [401(k) contribution limits](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500)1 in 2026 compared to 2025: \| \| \| \| \| \|---\|---\|---\|---\| \| 401(k) plan limits \| 2025 \| 2026 \| Difference \| \| Maximum contribution limit \| \$23,500 \| \$24,500 \| \$1,000 \| \| Catch-up contributions for employees age 50 and over \| \$7,500 \| \$8,000 \| \$500 \| \| Catch-up contributions for employees aged 60 to 63 \| \$11,250 \| \$11,250 \| \$0 \| \| Maximum contribution limit on combined employee and employer contributions \| \$70,000 \| \$72,000 \| \$2,000 \| \| Maximum contribution limit, including catch-up contributions (age 50+) \| \$77,500 \| \$80,000 \| \$2,500 \| \| Maximum contribution limit, including super catch-up contributions (ages 60 to 63) \| \$81,250 \| \$83,250 \| \$2,000 \| These amounts also apply to 403(b) plans, and most 457(b), as well as the federal government’s Thrift Savings Plans. A [403(b) plan](https://www.empower.com/the-currency/work/403b-plan) is an employer-sponsored retirement plan that’s very similar to a 401(k) plan. The key difference is that 403(b) plans are offered by public schools, churches, and 501(c)(3) non-profit organizations. The IRS typically announces official limits for the coming year in late October or early November. *Read more:* [401(k) vs 403(b): What's the difference?](https://www.empower.com/the-currency/work/difference-between-401k-and-403b) ## Employer and employee 401(k) contribution limits You cannot go over a specified limit for total plan contributions, which applies to the sum of elective deferrals, employer matching contributions, and employer non-elective contributions. We define all these below. - Elective deferrals: [Refers](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-contributions) to amounts of money you elect to defer from your pay and into your employer’s retirement plan.3 - Employer matching contributions: [Refers](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-contributions) to contributions your employer makes to your retirement plan account if you contribute to the plan from your salary.4 Here’s an example of a common 401(k) matching formula: 50 cents on the dollar up to 6% of the employee’s pay. Not taking advantage of the match may forgo employer contributions in your account, so it’s usually advantageous for you to contribute enough to get the match. - Employer non-elective contributions: When an employer [contributes](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-contributions) to an employee in an employer-sponsored retirement plan (whether the employee contributes or not), these are employer non-elective contributions.5 They are generally also known as profit-sharing contributions. In 2026, the maximum contribution limit on combined employee and employer contributions is [\$72,000](https://www.irs.gov/pub/irs-drop/n-25-67.pdf), up from \$70,000 in 2025.6 *Read more:* [What is 401(k) matching and how does it work?](https://www.empower.com/the-currency/work/how-does-401k-matching-work) ## Catch up contributions for individuals age 50 and over Individuals aged 50 and older are allowed to put more money into a 401(k) every year to help them make up for earlier years when they couldn't spare as much. In 2026, the catch-up contribution limit is [\$8,000](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500).7 You can apply the catch-up contribution limit from the start of the year until the end of the year if you are 50 or older during the year. Let’s say you happened to turn 50 on December 31, 2026. You can still take advantage of the catch-up contribution for the entire year. ## Catch up contributions for individuals ages 60 to 63 For 2026, the higher catch-up contribution limit for individuals who attain ages 60 to 63 in 2026 remains [\$11,250](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500) (instead of the standard \$8,000 catch-up amount).8 ## Highly compensated employee 401(k) contribution limits Highly compensated employees face different limits than non-highly compensated employees. Who is a highly compensated employee (HCE) and how does being one affect your 401(k) contribution limits? It’s important to know the IRS rules for 401(k) contribution limits. If you own more than 5% of the interest in a business or receive compensation above a certain amount (more than [\$160,000](https://www.irs.gov/pub/irs-drop/n-25-67.pdf) in 2025 and the same in 2026, as determined by the IRS), you’re considered an HCE employee for 401(k) retirement plan purposes.9 In addition, the annual compensation limit that can be taken into account for certain retirement plan calculations is [\$360,000](https://www.irs.gov/pub/irs-drop/n-25-67.pdf) for 2026 (up from \$350,000 for 2025).10 You will have to follow more stringent contribution limits. You can take a look at the IRS [tests](https://www.employeefiduciary.com/blog/401k-nondiscrimination-testing-basics) that impact HCE contribution limits.11 ## Differences between Roth 401(k) contribution types Some employers offer both a traditional pre-tax 401(k) and a Roth 401(k) option, but what’s the difference between each? Let’s walk through the differences between both account types so you can decide which type works best for you. - Roth 401(k): A Roth 401(k) is a contribution option within an employer-sponsored savings plan that enables you to invest after-tax dollars for retirement. You pay income taxes on your contributions but don’t pay taxes when the amounts are distributed from the plan if you take withdrawals after you reach age 59½ and the account has been funded for at least five years. All your accumulated contributions and any earnings may be withdrawn tax free.\,\\* - Traditional pre-tax 401(k): A traditional pre-tax 401(k) is a contribution option within an employer-sponsored plan that gives you the option to defer paying income tax on the amount you contribute for retirement. For example, let’s say you earn \$50,000 and max out your retirement plan at \$24,500. Assuming you have no other deductions, your taxable earnings will reduce from \$50,000 to \$25,500. (\$50,000 – \$24,500 = \$25,500). - Wondering whether you should contribute to both? You might want to take a tax-diversified approach because it could allow you to diversify your retirement savings. You can contribute to both a Roth and a traditional pre-tax 401(k) plan if your total contribution (as an employee) doesn’t go over \$23,500 in 2025 and \$24,500 in 2026. - In addition to Roth and traditional pre-tax 401(k) plans, some employers also offer an “after-tax” contribution option, allowing you to save up to the total annual limit of \$70,000 in 2025 and \$72,000 in 2026. This means you can put away after-tax money and any investment growth is tax-deferred in your 401(k) account until withdrawal, at which point taxes would be due. *Read more:* [What to know about 401(k) rollover options](https://www.empower.com/the-currency/work/401k-rollover) ## New SECURE 2.0 Act rules for 2026 New for SECURE 2.0 Act catch-up rules: [IRS](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500) guidance sets the Roth catch-up wage threshold at \$150,000 (based on 2025 wages) for determining whether an individual’s catch-up contributions for 2026 must be designated as Roth contributions.12 The U.S. Treasury and the IRS also state that the final regulations’ Roth catch-up requirement generally applies to contributions in taxable years beginning after Dec. 31, 2026 (with good-faith early implementation permitted). ## The bottom line It’s important to pay attention to 401(k) contribution limits so you don’t go over the limit or contribute too little to meet your goals. Wonder how your 401(k) balance compares to others who are close to your age? Check out where you fit in with your peers: Empower’s [average 401(k) balance by age](https://www.empower.com/the-currency/life/average-401k-balance-age). Financial professionals suggest contributing regularly to your retirement savings plan. It’s also a good idea to at least contribute enough to your 401(k) that you receive the full match from your employer. Contributing even more beyond your employer’s match may help you build additional retirement savings, depending on your budget and goals. Remember, preparing for retirement should be part of your overall financial plan. You can use Empower's free and secure professional-grade [online financial tools](https://www.empower.com/tools) to see all your accounts in one place, analyze your spending, and plan for long-term financial goals. ## Frequently asked questions about 401(k) contribution limits for 2026 ### What is the 401(k) contribution limit for 2026? The employee elective deferral limit for 2026 is \$24,500. ### What is the 401(k) catch-up contribution limit for 2026 if you’re age 50 or older? For 2026, the catch-up contribution limit that generally applies at age 50+ is \$8,000. ### What is the special 401(k) catch-up limit for ages 60 to 63 in 2026? For individuals who attain ages 60, 61, 62, or 63 in 2026, the catch-up limit is \$11,250. ### What is the total 401(k) contribution limit (employee + employer) for 2026? The defined contribution “annual additions” limit for 2026 is \$72,000 (not counting catch-up contributions). ### Do Roth and traditional 401(k) contributions have different limits? No — Roth and pretax 401(k) employee contributions share the same overall elective deferral limit (combined across contribution types). ### Do these 2026 limits also apply to 403(b) and 457 plans? Yes — the IRS says the \$24,500 employee limit applies to 401(k), 403(b), governmental 457 plans, and the Thrift Savings Plan for 2026. ### What is the Roth catch-up wage threshold tied to 2026 catch-up contributions? The Roth catch-up wage threshold (based on 2025 wages) used to determine Roth catch-up treatment for 2026 is [\$150,000](https://www.irs.gov/pub/irs-drop/n-25-67.pdf), so any employees who make \$150,000 or more must designate the funds as Roth contributions.13 ### When do the final Roth catch-up regulations generally apply? The IRS says the final regulations generally apply to contributions in taxable years beginning after December 31, 2026, with a “reasonable, good-faith interpretation” standard before the applicability date. ## Need help navigating your finances? Our free money tools bring your accounts together in one place so you can monitor your investments and plan for your big financial goals. [Sign up](https://www.empower.com/onboarding-v2) ## Get financially happy Put your money to work for life and play [Start here](https://www.empower.com/onboarding-v2) 1 Internal Revenue Service, “Retirement topics – Contributions,” Accessed December 2025. 2 Internal Revenue Service, “401(k) limit increases to \$24,500 for 2026, IRA limit increases to \$7,500,” Nov. 13, 2025. 3 Internal Revenue Service, “Retirement topics – Contributions,” Accessed December 2025. 4 Ibid. 5 Ibid. 6 Internal Revenue Service, “2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living,” Accessed December 2025. 7 Internal Revenue Service, “401(k) limit increases to \$24,500 for 2026, IRA limit increases to \$7,500,” Nov. 13, 2025. 8 Ibid. 9 Internal Revenue Service, “2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living,” Accessed December 2025. 10 Ibid. 11 Employee Fiduciary, “401(k) Nondiscrimination Testing – Basics and Deadlines,” January 2024. 12 Internal Revenue Service, “401(k) limit increases to \$24,500 for 2026, IRA limit increases to \$7,500,” Nov. 13, 2025. 13 Internal Revenue Service, “2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living,” Accessed December 2025. \A withdrawal from a Roth account is not subject to federal taxation as long as it is qualified as defined under IRS regulations. However, state and local taxes may still apply.* \\* Any earnings on Roth contributions will be taxed unless a withdrawal is a qualified distribution as defined by the IRS. For a withdrawal to be considered a qualified distribution, Roth contributions must have been in the account for at least five years, and the money withdrawn after age 59-1/2, death, or disability. Current rules are subject to change.* RO5076462-1225 [Retirement](https://www.empower.com/the-currency/search?search=Retirement) #### ![](https://image.email.personalcapital.com/lib/fe2f11727564047f7d1c77/m/1/55332e28-7363-4766-931d-caefc56a8fef.png?refresh)Be current. Get insights and intel on your money. \If you’re already registered with Empower, please use the same email address as your existing account. By providing your information and clicking Subscribe, you agree to our [Terms of Use](https://www.empower.com/hpc/terms-of-use "Terms of Use") and [Privacy Policy](https://www.empower.com/privacy "Privacy Policy") . 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Readable Markdown	## Key takeaways - Employees can invest more money into 401(k) plans in 2026, with contribution limits increasing from \$23,500 in 2025 to \$24,500 in 2026. - The limit on catch-up contributions increases to \$8,000 for employees age 50 or over in 2026, while the higher catch-up limit for people ages 60 to 63 remains \$11,250. - The definition of a “highly-compensated employee” – an individual who faces different limits on contributions – remains \$160,000 for 2026. For 2026, the employee 401(k) elective deferral limit is \$24,500 (up from \$23,500 in 2025). Catch-up contributions are generally capped at \$8,000 for people age 50 or older, while the ages 60 to 63 super catch-up remains \$11,250. Total employee + employer contributions are capped at \$72,000 (before any catch-up amounts). As you contemplate how to get started, consider how the [401(k)](https://www.empower.com/the-currency/work/what-is-a-401k) contribution limits can fit into your overall income and savings goals. For example, you could have a trickier time budgeting from month to month because a larger portion of your income may go to saving for retirement. However, when you see how much of an impact saving can have on your retirement savings, you may decide that contributing the annual maximum 401(k) amount can benefit your retirement savings plan over the long-term. In this piece, we’ll review the 401(k) contribution limits for 2025 and 2026. We’ll also go over employer-employee combination contribution limits and the highly compensated contribution limits. Finally, we’ll review traditional and Roth IRA contribution limits. *Read more:* [Rollover IRA taxes and the 60-day rule](https://www.empower.com/the-currency/money/rollover-ira-taxes-60-day-rule) ## 401(k) contribution limits in 2025 and 2026 First, what are contribution limits? Contribution limits are set by the IRS and refer to the [amounts](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-contributions) that can be contributed to a 401(k) each year.1 The maximum deferral limit refers to the annual amount that an employee can defer from their pay to a 401(k) plan. The maximum contribution amount, on the other hand, refers to the total amount of funds both the employee and employer can contribute during the year. Total contributions cannot exceed 100% of an employee’s annual compensation. Let’s look at the [401(k) contribution limits](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500)1 in 2026 compared to 2025: \| \| \| \| \| \|---\|---\|---\|---\| \| 401(k) plan limits \| 2025 \| 2026 \| Difference \| \| Maximum contribution limit \| \$23,500 \| \$24,500 \| \$1,000 \| \| Catch-up contributions for employees age 50 and over \| \$7,500 \| \$8,000 \| \$500 \| \| Catch-up contributions for employees aged 60 to 63 \| \$11,250 \| \$11,250 \| \$0 \| \| Maximum contribution limit on combined employee and employer contributions \| \$70,000 \| \$72,000 \| \$2,000 \| \| Maximum contribution limit, including catch-up contributions (age 50+) \| \$77,500 \| \$80,000 \| \$2,500 \| \| Maximum contribution limit, including super catch-up contributions (ages 60 to 63) \| \$81,250 \| \$83,250 \| \$2,000 \| These amounts also apply to 403(b) plans, and most 457(b), as well as the federal government’s Thrift Savings Plans. A [403(b) plan](https://www.empower.com/the-currency/work/403b-plan) is an employer-sponsored retirement plan that’s very similar to a 401(k) plan. The key difference is that 403(b) plans are offered by public schools, churches, and 501(c)(3) non-profit organizations. The IRS typically announces official limits for the coming year in late October or early November. *Read more:* [401(k) vs 403(b): What's the difference?](https://www.empower.com/the-currency/work/difference-between-401k-and-403b) ## Employer and employee 401(k) contribution limits You cannot go over a specified limit for total plan contributions, which applies to the sum of elective deferrals, employer matching contributions, and employer non-elective contributions. We define all these below. - Elective deferrals: [Refers](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-contributions) to amounts of money you elect to defer from your pay and into your employer’s retirement plan.3 - Employer matching contributions: [Refers](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-contributions) to contributions your employer makes to your retirement plan account if you contribute to the plan from your salary.4 Here’s an example of a common 401(k) matching formula: 50 cents on the dollar up to 6% of the employee’s pay. Not taking advantage of the match may forgo employer contributions in your account, so it’s usually advantageous for you to contribute enough to get the match. - Employer non-elective contributions: When an employer [contributes](https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-contributions) to an employee in an employer-sponsored retirement plan (whether the employee contributes or not), these are employer non-elective contributions.5 They are generally also known as profit-sharing contributions. In 2026, the maximum contribution limit on combined employee and employer contributions is [\$72,000](https://www.irs.gov/pub/irs-drop/n-25-67.pdf), up from \$70,000 in 2025.6 *Read more:* [What is 401(k) matching and how does it work?](https://www.empower.com/the-currency/work/how-does-401k-matching-work) ## Catch up contributions for individuals age 50 and over Individuals aged 50 and older are allowed to put more money into a 401(k) every year to help them make up for earlier years when they couldn't spare as much. In 2026, the catch-up contribution limit is [\$8,000](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500).7 You can apply the catch-up contribution limit from the start of the year until the end of the year if you are 50 or older during the year. Let’s say you happened to turn 50 on December 31, 2026. You can still take advantage of the catch-up contribution for the entire year. ## Catch up contributions for individuals ages 60 to 63 For 2026, the higher catch-up contribution limit for individuals who attain ages 60 to 63 in 2026 remains [\$11,250](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500) (instead of the standard \$8,000 catch-up amount).8 ## Highly compensated employee 401(k) contribution limits Highly compensated employees face different limits than non-highly compensated employees. Who is a highly compensated employee (HCE) and how does being one affect your 401(k) contribution limits? It’s important to know the IRS rules for 401(k) contribution limits. If you own more than 5% of the interest in a business or receive compensation above a certain amount (more than [\$160,000](https://www.irs.gov/pub/irs-drop/n-25-67.pdf) in 2025 and the same in 2026, as determined by the IRS), you’re considered an HCE employee for 401(k) retirement plan purposes.9 In addition, the annual compensation limit that can be taken into account for certain retirement plan calculations is [\$360,000](https://www.irs.gov/pub/irs-drop/n-25-67.pdf) for 2026 (up from \$350,000 for 2025).10 You will have to follow more stringent contribution limits. You can take a look at the IRS [tests](https://www.employeefiduciary.com/blog/401k-nondiscrimination-testing-basics) that impact HCE contribution limits.11 ## Differences between Roth 401(k) contribution types Some employers offer both a traditional pre-tax 401(k) and a Roth 401(k) option, but what’s the difference between each? Let’s walk through the differences between both account types so you can decide which type works best for you. - Roth 401(k): A Roth 401(k) is a contribution option within an employer-sponsored savings plan that enables you to invest after-tax dollars for retirement. You pay income taxes on your contributions but don’t pay taxes when the amounts are distributed from the plan if you take withdrawals after you reach age 59½ and the account has been funded for at least five years. All your accumulated contributions and any earnings may be withdrawn tax free.\,\\* - Traditional pre-tax 401(k): A traditional pre-tax 401(k) is a contribution option within an employer-sponsored plan that gives you the option to defer paying income tax on the amount you contribute for retirement. For example, let’s say you earn \$50,000 and max out your retirement plan at \$24,500. Assuming you have no other deductions, your taxable earnings will reduce from \$50,000 to \$25,500. (\$50,000 – \$24,500 = \$25,500). - Wondering whether you should contribute to both? You might want to take a tax-diversified approach because it could allow you to diversify your retirement savings. You can contribute to both a Roth and a traditional pre-tax 401(k) plan if your total contribution (as an employee) doesn’t go over \$23,500 in 2025 and \$24,500 in 2026. - In addition to Roth and traditional pre-tax 401(k) plans, some employers also offer an “after-tax” contribution option, allowing you to save up to the total annual limit of \$70,000 in 2025 and \$72,000 in 2026. This means you can put away after-tax money and any investment growth is tax-deferred in your 401(k) account until withdrawal, at which point taxes would be due. *Read more:* [What to know about 401(k) rollover options](https://www.empower.com/the-currency/work/401k-rollover) ## New SECURE 2.0 Act rules for 2026 New for SECURE 2.0 Act catch-up rules: [IRS](https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500) guidance sets the Roth catch-up wage threshold at \$150,000 (based on 2025 wages) for determining whether an individual’s catch-up contributions for 2026 must be designated as Roth contributions.12 The U.S. Treasury and the IRS also state that the final regulations’ Roth catch-up requirement generally applies to contributions in taxable years beginning after Dec. 31, 2026 (with good-faith early implementation permitted). ## The bottom line It’s important to pay attention to 401(k) contribution limits so you don’t go over the limit or contribute too little to meet your goals. Wonder how your 401(k) balance compares to others who are close to your age? Check out where you fit in with your peers: Empower’s [average 401(k) balance by age](https://www.empower.com/the-currency/life/average-401k-balance-age). Financial professionals suggest contributing regularly to your retirement savings plan. It’s also a good idea to at least contribute enough to your 401(k) that you receive the full match from your employer. Contributing even more beyond your employer’s match may help you build additional retirement savings, depending on your budget and goals. Remember, preparing for retirement should be part of your overall financial plan. You can use Empower's free and secure professional-grade [online financial tools](https://www.empower.com/tools) to see all your accounts in one place, analyze your spending, and plan for long-term financial goals. ## Frequently asked questions about 401(k) contribution limits for 2026 ### What is the 401(k) contribution limit for 2026? The employee elective deferral limit for 2026 is \$24,500. ### What is the 401(k) catch-up contribution limit for 2026 if you’re age 50 or older? For 2026, the catch-up contribution limit that generally applies at age 50+ is \$8,000. ### What is the special 401(k) catch-up limit for ages 60 to 63 in 2026? For individuals who attain ages 60, 61, 62, or 63 in 2026, the catch-up limit is \$11,250. ### What is the total 401(k) contribution limit (employee + employer) for 2026? The defined contribution “annual additions” limit for 2026 is \$72,000 (not counting catch-up contributions). ### Do Roth and traditional 401(k) contributions have different limits? No — Roth and pretax 401(k) employee contributions share the same overall elective deferral limit (combined across contribution types). ### Do these 2026 limits also apply to 403(b) and 457 plans? Yes — the IRS says the \$24,500 employee limit applies to 401(k), 403(b), governmental 457 plans, and the Thrift Savings Plan for 2026. ### What is the Roth catch-up wage threshold tied to 2026 catch-up contributions? The Roth catch-up wage threshold (based on 2025 wages) used to determine Roth catch-up treatment for 2026 is [\$150,000](https://www.irs.gov/pub/irs-drop/n-25-67.pdf), so any employees who make \$150,000 or more must designate the funds as Roth contributions.13 ### When do the final Roth catch-up regulations generally apply? The IRS says the final regulations generally apply to contributions in taxable years beginning after December 31, 2026, with a “reasonable, good-faith interpretation” standard before the applicability date. 1 Internal Revenue Service, “Retirement topics – Contributions,” Accessed December 2025. 2 Internal Revenue Service, “401(k) limit increases to \$24,500 for 2026, IRA limit increases to \$7,500,” Nov. 13, 2025. 3 Internal Revenue Service, “Retirement topics – Contributions,” Accessed December 2025. 4 Ibid. 5 Ibid. 6 Internal Revenue Service, “2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living,” Accessed December 2025. 7 Internal Revenue Service, “401(k) limit increases to \$24,500 for 2026, IRA limit increases to \$7,500,” Nov. 13, 2025. 8 Ibid. 9 Internal Revenue Service, “2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living,” Accessed December 2025. 10 Ibid. 11 Employee Fiduciary, “401(k) Nondiscrimination Testing – Basics and Deadlines,” January 2024. 12 Internal Revenue Service, “401(k) limit increases to \$24,500 for 2026, IRA limit increases to \$7,500,” Nov. 13, 2025. 13 Internal Revenue Service, “2026 Amounts Relating to Retirement Plans and IRAs, as Adjusted for Changes in Cost-of-Living,” Accessed December 2025. \A withdrawal from a Roth account is not subject to federal taxation as long as it is qualified as defined under IRS regulations. However, state and local taxes may still apply.* \\* Any earnings on Roth contributions will be taxed unless a withdrawal is a qualified distribution as defined by the IRS. For a withdrawal to be considered a qualified distribution, Roth contributions must have been in the account for at least five years, and the money withdrawn after age 59-1/2, death, or disability. Current rules are subject to change.* RO5076462-1225
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