2026 Retirement Contribution Limits: How Much You Can Put in a 401(k) and IRA

The Main 401(k) Limit Is $24,500

The IRS increased the 2026 employee elective-deferral limit to $24,500. The same basic limit applies across 401(k), 403(b), most governmental 457 plans and the federal Thrift Savings Plan. This is the employee contribution ceiling; employer contributions are governed by a separate overall plan limit.

The Standard Catch-Up Is $8,000

Participants who are age 50 or older by year-end may be allowed to contribute an additional $8,000, bringing the possible employee total to $32,500. Your plan must permit catch-up contributions. Payroll systems do not all handle elections the same way, so verify the setting rather than assuming it activates automatically.

A Higher Catch-Up Applies at Ages 60 Through 63

Under SECURE 2.0 rules, eligible participants who turn 60, 61, 62 or 63 during 2026 may have a higher catch-up limit of $11,250 instead of $8,000. That can produce a potential employee contribution total of $35,750. Confirm eligibility and implementation with the plan administrator.

The IRA Limit Is $7,500

The combined 2026 limit across all traditional and Roth IRAs is $7,500. Eligible individuals age 50 or older can add a $1,100 catch-up, for a combined limit of $8,600. The limit applies across accounts, not separately to each IRA.

Income Rules Still Matter

The contribution ceiling is not the same as tax eligibility. Traditional IRA deductions may phase out when you or a spouse is covered by a workplace plan. Roth IRA contribution eligibility also phases out at higher income levels. Filing status and modified adjusted gross income determine which rules apply.

How to Update Payroll Without Overshooting

Check year-to-date employee contributions, remaining pay periods and any bonus elections. Divide the amount still needed by remaining checks, then review whether your employer match is calculated each pay period or includes a year-end true-up. Contributing too early can reduce matching opportunities in plans without a true-up.

Prioritize the Most Valuable Dollars

A common order is to capture the full employer match, address expensive revolving debt and maintain emergency savings, then increase retirement contributions. After that, compare plan costs and investment options with an IRA or other available accounts. The right order depends on liquidity, taxes and plan quality.

The Bottom Line

The 2026 limits create more tax-advantaged saving room, but the headline maximum is not a mandate. Choose a sustainable contribution rate, capture available matching dollars and revisit the election after raises or major cash-flow changes. IRS limits can be updated, so verify official guidance before year-end transactions.