2026 401(k) Plan Contribution Limits – Maximum You Can Contribute
The 2026 401(k) and TSP employee contribution limit increased to $24,500, with a standard catch-up contribution of $8,000 for those age 50 and older. Participants aged 60 to 63 can make an enhanced catch-up contribution of $11,250 under SECURE 2.0. View all 401(k) contribution limits from 2007 to 2026.
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Investing in your 401(k) plan or other retirement account is one of the easiest and best ways to prepare for retirement. These accounts offer a valuable tax advantage for investors, but there are some limitations. Each year the IRS releases updated 401(k) plan contribution limits. You must pay a tax penalty if you exceed the IRS limit for your age group.
How Much Can I Contribute to My 401(k) in 2026?
The maximum an employee can contribute to their 401(k) plans in 2026 is $24,500, a $1,000 increase from the 2025 tax year.
There is also a standard catch-up contribution of $8,000 available to participants who are at least 50 years old, an increase of $500 from 2025.
Under SECURE 2.0, participants aged 60 to 63 are eligible for an enhanced catch-up contribution of $11,250, 50% more than the standard catch-up amount.
The IRS also increased the 2026 total contribution limit to $72,000. This limit includes employee contributions, matching contributions, bonuses, and other deferred compensation. Participants aged 50 and older can add their catch-up contributions to bring the total to $80,000, while those aged 60 to 63 can reach a total of $83,250.
Maximum 401(k) Contribution Limits: 2007-2026
The following chart lists the maximum 401(k) plan contribution limits from 2007 through 2026.
- Employee Contributions apply to persons under the age of 50
- Catch-Up Contributions apply to people aged 50 and older
- Total Contribution Limit is the maximum from all sources for those under age 50
- Total With Catch-Up is the maximum from all sources for those aged 50 or older
| Year | Employee Contributions | Catch-Up Contributions (Age 50+) | Total Contribution Limit | Total Contribution Limit With Catch-Up |
|---|---|---|---|---|
| 2026 | $24,500 | $8,000 | $72,000 | $80,000 |
| 2025 | $23,500 | $7,500 | $70,000 | $77,500 |
| 2024 | $23,000 | $7,500 | $69,000 | $76,500 |
| 2023 | $22,500 | $7,500 | $66,000 | $73,500 |
| 2022 | $20,500 | $6,500 | $61,000 | $67,500 |
| 2021 | $19,500 | $6,500 | $58,000 | $64,500 |
| 2020 | $19,500 | $6,500 | $57,000 | $63,500 |
| 2019 | $19,000 | $6,000 | $56,000 | $62,000 |
| 2018 | $18,500 | $6,000 | $55,000 | $61,000 |
| 2017 | $18,000 | $6,000 | $54,000 | $60,000 |
| 2016 | $18,000 | $6,000 | $53,000 | $59,000 |
| 2015 | $18,000 | $6,000 | $53,000 | $59,000 |
| 2014 | $17,500 | $5,500 | $52,000 | $57,500 |
| 2013 | $17,500 | $5,500 | $51,000 | $56,500 |
| 2012 | $17,000 | $5,500 | $50,000 | $55,500 |
| 2011 | $16,500 | $5,500 | $49,000 | $54,500 |
| 2010 | $16,500 | $5,500 | $49,000 | $54,500 |
| 2009 | $16,500 | $5,500 | $49,000 | $54,500 |
| 2008 | $15,500 | $5,000 | $46,000 | $51,000 |
| 2007 | $15,500 | $5,000 | $46,000 | $51,000 |
Note: For 2026, participants aged 60 to 63 can make an enhanced catch-up contribution of $11,250, bringing their total employee contribution to $35,750 and their total contribution limit from all sources to $83,250.
Which Retirement Plans Do These Limits Apply To?
These contribution limits apply to the 401(k) plan as well as to several retirement plans written into the tax code, including the Thrift Savings Plan, Roth and Traditional versions of the 401(k), and similar employer-sponsored retirement plans. These limits also apply to the Solo 401(k), which is a small business retirement plan.
Look into your specific plan as there may be slight differences in employer contribution rules, profit sharing, or other plan-specific details.
How to Maximize Your 401(k) Contributions in 2026
If you can maximize your 401(k) contributions, you will be well on your way to building a solid retirement fund. Here are two ways to calculate how much to contribute.
Fixed Dollar Contributions
If your plan allows contributions of a flat dollar amount, you can contribute that amount directly from your paycheck. To max out your contributions in 2026:
- Under age 50: $2,041.67 per month, or $1,020.83 per check if paid biweekly
- Age 50 and older: $2,708.33 per month, or $1,354.17 per check if paid biweekly
- Ages 60 to 63: $2,979.17 per month, or $1,489.58 per check if paid biweekly
These are the amounts needed to max out your contributions. You can always contribute less if that works better for your budget.
Percentage-Based Contributions
If your plan requires a percentage-based contribution, divide the maximum contribution amount by your total annual salary to determine the right percentage.
For example, if you earn $100,000 per year and want to max out your 401(k) at $24,500, you will need to contribute 24.5% of your salary ($24,500 ÷ $100,000 = 24.5%).
If you cannot afford to contribute the maximum, try to at least contribute enough to capture your employer’s full matching contribution, that is free money you should not leave on the table.
What If I Contribute Too Much to My 401(k)?
If you exceed the annual contribution limit, you must withdraw the excess by April 15 of the following year or face a 10% early distribution tax, according to the IRS. You may also need to report the withdrawal as income and face additional penalties.
Many HR offices and 401(k) plans have systems that automatically stop contributions at the annual limit or refund any overage, so you may not owe extra penalties in those cases. However, those systems only work if you remain at the same employer for the entire year.
Pay special attention to contribution limits if you change jobs during the year, a common situation for separating military members. If you do contribute too much, work with your HR department or plan administrator to correct the issue as soon as you notice it and consult a tax professional to determine any additional tax implications.
IRA or 401(k)/TSP – Which Is Better for Retirement Planning?
Employees with access to a 401(k) or TSP may also be able to contribute to an Individual Retirement Arrangement (IRA). These are separate accounts with separate contribution limits, so contributing to one does not prevent you from contributing to the other.
Where Should You Invest First — IRA or 401(k)?
First, contribute enough to your 401(k) or TSP to maximize employer matching contributions, that is free money you should not pass up. Then, try to max out a Roth IRA if you are eligible.
This ensures you capture the full employer match while providing flexibility for both current and future tax planning. If your employer does not offer matching contributions, you may consider contributing to a Roth IRA first and then contributing to your 401(k).
Why Contribute to an IRA?
IRAs offer similar tax advantages to 401(k) plans but with more investment flexibility, you control how and where you invest your money, giving you greater freedom over investment types and costs. Roth IRAs also have no required minimum distributions, which is an important long-term planning advantage. Traditional and Roth 401(k) plans, including the Roth TSP, are subject to RMDs beginning at age 73, though Roth TSP accounts are no longer subject to RMDs during the owner’s lifetime under SECURE 2.0.
Not sure whether a traditional or Roth IRA is right for you? See our guide on choosing between a Roth IRA and a traditional IRA for a detailed breakdown.
If you can afford to maximize both accounts, consider what to do with additional savings beyond your retirement accounts, options include health savings accounts, taxable investment accounts, and real estate.
Start Maximizing Your 401(k) Contributions Today
Maximizing your 401(k) or TSP contributions is one of the most impactful steps you can take toward a financially secure retirement. Even if you cannot contribute the maximum right away, start with enough to capture your employer’s full match and increase your contributions over time as your income grows.
For military members, the TSP offers the same contribution limits as a civilian 401(k), plus unique advantages like low expense ratios, tax-free contributions from combat zone pay, and government matching contributions under the Blended Retirement System. Take full advantage of these benefits while you have access to them.
