The IRS sets annual limits on how much you can contribute to a 401(k). Knowing these limits — and maxing them out where possible — is one of the highest-impact things you can do for your retirement.
| Type | 2026 Limit | Change from 2025 |
|---|---|---|
| Employee elective deferrals | $23,500 | +$500 |
| Catch-up contribution (age 50+) | $7,500 | No change |
| SECURE 2.0 enhanced catch-up (age 60–63) | $11,250 | New for 2025+ |
| Total limit including employer match | $70,000 | +$2,000 |
| Compensation limit for calculations | $350,000 | +$10,000 |
If you are in the 22% federal tax bracket and contribute the full $23,500:
| Traditional 401(k) | Roth 401(k) | |
|---|---|---|
| Contributions | Pre-tax (reduces taxable income now) | After-tax (no immediate deduction) |
| Withdrawals in retirement | Taxed as ordinary income | Tax-free |
| Best for | High earners now, lower income in retirement | Younger earners, expecting higher tax rates later |
| 2026 limit | $23,500 combined | $23,500 combined |
The $23,500 limit applies to the total of traditional and Roth 401(k) contributions combined — you cannot contribute $23,500 to each.
The average US employer matches 50% of contributions up to 6% of salary. On a $60,000 salary, that is $1,800 in free money per year — a guaranteed 50% return on your first 6% contributed. Never leave this on the table.
See how your 401(k) contributions grow over time with our retirement calculator.
Retirement Calculator