There are some big changes to 401(k) limits for 2026. You can put away more pretax or Roth dollars than last year, but higher earners face a new Roth catch-up rule. Here’s a guide with the key numbers, IRS resources, steps to update your contributions, costs to watch out for, and common mistakes.

Quick reference

- 2026 standard 401(k) elective deferral limit: $24,500.

- Catch-up (age 50+): additional $8,000, making the max $32,500 for those 50–59 and 64+.

- "Super catch-up" (ages 60–63): additional $11,250, total max $35,750.

- Mandatory Roth treatment: catch-up contributions must be Roth if prior-year wages exceeded the statutory threshold (see IRS guidance).

- Official pages: IRS retirement plan limits page (https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits) and USA.gov retirement overview (https://www.usa.gov/retirement).

What changed for 2026

The big number for most people is $24,500 — that’s the maximum you can defer from paychecks into a 401(k), 403(b), 457(b) or the federal Thrift Savings Plan in 2026. That’s a $1,000 increase from 2025.

But if you’re older and behind on savings, catch-up rules give you extra room. Workers age 50 and older get an $8,000 catch-up contribution in 2026. So someone 50–59 (and those 64 and older) can put in up to $32,500 in 2026.

There’s also a "super catch-up" for people aged 60–63 — an extra $11,250 on top of the $24,500 base, which raises the possible total to $35,750 for those ages.

One major policy shift: catch-up contributions may be required to be Roth (after-tax) for higher earners. Under the SECURE 2.0 changes phased in recently, workers whose prior-year wages exceed the statutory threshold must make their catch-up contributions as Roth contributions. Check your plan and payroll office — employers are responsible for applying the rule correctly.

Who’s eligible

Anyone participating in an employer-sponsored 401(k), 403(b), governmental 457(b) plan or the Thrift Savings Plan can defer up to the base limit ($24,500) in 2026, subject to plan rules. Catch-up amounts apply if you meet the age tests on the last day of the calendar year.

Employer matches don’t count toward your elective deferral limit, but the total contribution limit—including employer and employee money—still applies. For 2026 that overall limit is set by the IRS; check the IRS plan limits page for the exact total contribution cap for the year because that figure is separate from the elective deferral limit.

Step-by-step: How to set or change your 2026 401(k) contributions

1. Check your current contribution rate in your plan account or pay slip. That shows how much you’re already deferring this year.

2. Confirm your plan accepts pretax, Roth, or both.

If your employer offers Roth 401(k) options, you can split pretax vs. Roth deferrals. If not, you may need alternatives (see Alternatives section).

3. Calculate how much you can still defer this calendar year. Subtract year-to-date deferrals from the $24,500 base limit — then add any eligible catch-up amount if you’re age 50+.

4. Decide your split: pretax or Roth.

If you’re subject to the higher-earner Roth catch-up rule, plan to make your catch-up portion Roth (after-tax). Employers generally enforce this through payroll withholding.

5. Update your payroll elections with HR or through your plan’s website. Provide the dollar amount or percentage you want deducted each pay period so you hit the full amount by year-end — don’t let payroll timing cause an overshoot.

6. Track contributions on pay stubs and the plan portal.

Keep an eye out for mistakes mixing Roth and pretax contributions, especially if your wages push you into the Roth catch-up rule.

7. If you change jobs midyear, consolidate year-to-date deferrals across plans — the $24,500 limit is per person for the year, not per plan. Coordinate with both employers’ plan administrators if needed.

Costs, fees and tax implications

Plan fees vary. Index funds in large plans often charge very low expense ratios — as little as 0.02% to 0.20% for institutional index funds. Other mutual funds and managed options may run 0.5% to 1.0% or more. Administrative fees can be assessed as a flat dollar amount or a percentage of assets — often $20–$200 a year or 0.1%–1.0% of assets depending on the plan.

Tax treatment matters: pretax 401(k) contributions reduce taxable income today, but withdrawals in retirement are taxed as ordinary income. Roth 401(k) contributions are after-tax — no immediate deduction, but qualified distributions are tax-free.

New Roth catch-up requirement means higher earners could face a bigger tax bill now because catch-up dollars are taxed up front. But that money grows tax-free and comes out tax-free in retirement if rules are met.

Alternatives if your plan won’t accept Roth or you’re maxed out

- Roth IRA: If your income allows, you can contribute to a Roth IRA. Roth IRAs have income limits; check the IRS IRA pages for 2026 thresholds.

- Traditional IRA: You can still use a traditional IRA for extra savings; deductibility depends on income and access to a workplace plan.

- After-tax 401(k) and in-plan Roth conversions ("Roth conversions" or "mega backdoor Roth"): Some plans permit after-tax contributions and in-plan conversions to Roth — that’s a way to move big amounts into Roth treatment. Plan rules vary, and conversions can have tax consequences.

- SEP/SIMPLE IRAs and solo 401(k): For self-employed workers or small-business owners, these plans may allow higher employer-side contributions.

Common mistakes to avoid

- Overcontributing: The $24,500 elective deferral is per person per year across all employer plans. If you change jobs and keep contributing the same amount, you could exceed the limit and trigger an excess deferral tax unless corrected by April 15 of the next year.

- Ignoring Roth catch-up rules: If you earned over the statutory threshold in the prior year, your catch-up must be Roth. Don’t assume all catch-ups can be pretax.

- Forgetting plan limits and vesting: Employer matches may be subject to vesting schedules and don’t count toward the employee deferral limit but do count toward the overall plan contribution cap.

- Not checking fund fees: Small differences in expense ratios add up. Move to low-cost index funds in your plan when reasonable.

- Missing coordination across accounts: IRA contributions, Roth conversions, and plan rollovers interact with tax brackets. Run numbers or talk with a tax pro before big moves.

How the IRS and employers handle enforcement

Employers and plan administrators are responsible for applying contribution limits and the Roth catch-up rule through payroll. The IRS enforces annual limits: excess deferrals must be removed (with earnings) to avoid double taxation. If an employer doesn’t offer a Roth option and you’re required to make a Roth catch-up, discuss alternatives with HR — some employers offer after-tax pathways or in-plan conversions.

Where to get official, up-to-date details

Check the IRS retirement plan contribution limits page for official numbers and guidance: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits

For general federal retirement information see https://www.usa.gov/retirement. Your plan’s Summary Plan Description (SPD) and your HR/payroll office are the practical sources to confirm how your employer applies limits and Roth rules.

Related Articles

The headline things: $24,500 is the base 2026 limit, add $8,000 if you’re 50+, and up to $11,250 more for ages 60–63 under the super catch-up. Employers must follow IRS rules — and high earners may have to make catch-up dollars into Roth accounts. Check pay stubs, update payroll elections early in the year, and talk to HR or a tax adviser if you cross wage thresholds or change jobs midyear.