If you’re looking to boost your retirement savings, understanding the IRS contribution limits for your 401(k) is a great place to start. Each year, the IRS updates how much you (and your employer) can contribute to your workplace plan. Here’s a quick overview of what’s changing for 2026.
In 2025, the employee limit rose to $23,500, and the combined limit to $70,000. Most workers 50+ can still contribute an additional $7,500, but those ages 60–63 may be able to put in a larger catch-up amount of $11,250 if their plan allows.
For 2026, the IRS announced an increase to the employee limit to $24,500, with a combined cap of $72,000. Catch-up contributions rise to $8,000 for most workers 50+, while those 60–63 may continue to use the enhanced $11,250 limit depending on their plan. Let's also look at the total contribution limits: for those age 50+ the maximum total is $32,500 ($24,500 standard limit + $8,000 catch-up) and for those aged 60-63 the maximum total is $35,750 ($24,500 standard limit + $11,250 higher catch-up).
These limits apply across both traditional and Roth 401(k)s combined, even if you have access to more than one plan. If your employer offers after-tax contributions, you may be able to save up to the full combined limit each year, potentially tens of thousands more, depending on employer contributions and your plan rules.
To avoid penalties, be careful not to exceed annual limits, especially if you switch jobs mid-year. If an overcontribution occurs, it must be corrected by April 15 of the following year.
So how much should you save? A good rule of thumb is to aim for 15% of your income, including employer contributions. Start early, take full advantage of any employer match, increase your savings rate over time, and make sure to keep track of old 401(k) accounts from previous employers.
Staying informed about changing contribution limits can help you make the most of your retirement benefits—and keep you on track for a more secure financial future. Read more about the recent IRS changes here.
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