401(k) Contribution Limit Rises to $24,500 in 2026 as IRS Adjusts for Inflation
The IRS has raised the annual 401(k) contribution limit to $24,500 for 2026, up from the prior year. IRA limits have also increased to $7,500. Workers aged 60 to 63 can now contribute up to $35,750 annually under a new super catch-up provision.
The IRS raised the annual contribution limit for 401(k), 403(b), and most 457 plans to $24,500 for 2026, an increase from the prior year driven by cost-of-living adjustments.
Workers aged 50 and older can contribute an additional $8,000 as a catch-up contribution, bringing their total to $32,500. A new super catch-up provision for workers aged 60, 61, 62, and 63 allows an even higher catch-up of $11,250, for a total of $35,750, provided the plan allows it.
The IRA contribution limit also increased, to $7,500 for 2026. Workers aged 50 and older can add a $1,100 catch-up contribution, for a total of $8,600.
A new rule took effect in 2026 requiring high earners to make catch-up contributions as Roth contributions. Workers who earned more than $150,000 in FICA wages in 2025 must now designate any catch-up contributions as after-tax Roth dollars rather than pre-tax traditional contributions.
The combined limit for employee and employer contributions to 401(k) and 403(b) plans is $72,000 for 2026.
Financial advisors say the higher limits are especially valuable for workers in their peak earning years who are trying to close a retirement savings gap. The 2026 Retirement Confidence Survey found that only 64 percent of Americans feel confident about their retirement savings, with rising housing and healthcare costs cited as the main barriers.
