The IRS adjusts 401(k) contribution limits for inflation most years. Knowing and hitting these limits is the most direct lever you have on tax-deferred wealth building.
2026 401(k) limits
| Contribution type | 2026 limit | Change from 2025 |
|---|---|---|
| Employee elective deferrals | $23,500 | +$500 |
| Catch-up (age 50–59, 64+) | $7,500 | No change |
| SECURE 2.0 catch-up (age 60–63) | $11,250 | New provision |
| Total limit (employee + employer) | $70,000 | +$1,000 |
| Compensation limit for calculations | $350,000 | +$5,000 |
The new SECURE 2.0 super catch-up (ages 60–63)
Starting 2025, employees aged 60–63 can contribute a "super" catch-up of $11,250 (instead of the standard $7,500). This gives 60–63 year olds a total employee contribution limit of $34,750. This is specifically designed to allow final accumulation sprint before retirement.
Does employer match count toward the $23,500?
No. The $23,500 is the employee contribution limit. Employer contributions are separate and count toward the total $70,000 combined limit. A 6% employer match on $90,000 salary = $5,400 employer contribution. Your maximum employee contribution remains $23,500 regardless of employer match.
Strategies for people who can't max
- Contribute at least up to the employer match (guaranteed return)
- Increase contribution by 1% each year — often $50–$100/month that adjusts naturally
- Set contribution to increase automatically each January
- If above the standard limit but below the super catch-up (age 60–63): this is your window — use it
Want to actually apply this?
CashControlly helps you turn this into daily habits. USD-native, no bank connection.
Start 7-day free trial