401 K 2026contribution Limit
The 401(k) contribution limit for 2026 is $23,500 for employee deferrals if you're under 50, and $31,000 total if you're 50 or older (including the $7,500 catch-up). Employers can also contribute separately, bringing the combined total to $70,000 ($77,500 with catch-up) including all sources.
How do I calculate my maximum 401(k) contribution for 2026?
Start with your age on December 31, 2026. If you're under 50, your employee deferral limit is $23,500 for the year.
What counts toward the $23,500 employee deferral limit?
Only the money you elect to defer from your own paycheck counts here: traditional pre-tax deferrals, Roth 401(k) deferrals, or any combination of the two. Both types share the same $23,500 bucket.
How does the $70,000 combined limit work in 2026?
The $70,000 figure ($77,500 if you're 50 or older) is the sum of employee deferrals, employer match, profit-sharing, and any non-Roth after-tax contributions you make in a single plan. For instance, if you defer $23,500, your employer matches $5,000, and you put in $20,000 of after-tax money for a mega-backdoor Roth strategy, your combined total is $48,500—well under the $70,000 ceiling.
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What happens if I accidentally exceed the limit?
If you defer more than $23,500 ($31,000 with catch-up) across all your 401(k) accounts by December 31, you have until April 15 of the following year to withdraw the excess and any earnings on it. Contact each plan administrator in writing before March 1 and request a return of excess deferrals.
How do I set my payroll deferral to hit exactly $23,500?
Most plans let you enter either a flat dollar amount per paycheck or a percentage of gross pay. If your salary is stable, divide $23,500 by your number of remaining pay periods and enter that dollar figure.
Are there special 2026 rules for SIMPLE 401(k) or 403(b) plans?
SIMPLE 401(k) plans—offered by employers with 100 or fewer employees—have a separate, lower limit: $16,500 in 2026 for those under 50, and $20,000 with the $3,500 catch-up if you're 50-plus. These figures are distinct from the regular 401(k) caps and cannot be mixed.
FAQ
Can I contribute to both a 401(k) and an IRA in 2026?
Yes. The 401(k) limit and the IRA limit ($7,000 in 2026, or $8,000 if 50-plus) are separate.
Does my employer match count toward my $23,500 limit?
No. Employer contributions—match, profit-sharing, or discretionary—do not reduce your $23,500 employee deferral space.
What if I change jobs mid-year in 2026?
Your $23,500 (or $31,000) limit follows you across all employers for the calendar year. If you deferred $15,000 at Job A, you can only defer $8,500 at Job B.
When will the IRS announce 2026 limits?
Typically in late October or early November 2026. Limits adjust for inflation in $500 increments under the Internal Revenue Code Section 415, so any increase depends on the Consumer Price Index change measured through September 2026.
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How the 401k calculation works
A 401k projection starts with the current balance and adds planned employee and employer contributions over time. It then applies an assumed rate of return, usually with periodic compounding. Actual results depend on investment performance, fees, contribution timing, vesting, and withdrawals. Review the current 401k limit and your plan documents because IRS limits and employer contribution formulas can change.
Traditional 401k contributions generally receive different current tax treatment from roth 401k contributions, while qualified withdrawal rules also differ. A 401k plan may offer limited investment choices and an employer match, whereas an IRA generally offers a separate contribution limit and broader provider selection. A solo 401k is designed for eligible self-employed individuals. A 403b plan and the federal TSP have their own rules and should not be treated as identical accounts.
Common questions
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