2026 401(k) contribution limits: $23,500 employee, $31,000 with catch-up (50+). Total limit $70,000. Roth 401k included.
Assumes constant return rate. Does not account for inflation, taxes, or Social Security. For illustrative purposes only.
The IRS adjusts 401(k) contribution limits annually for inflation. For 2026, the key limits are: employee elective deferrals $23,500 (up from $23,000 in 2025); catch-up contributions for employees age 50–59 and 63–64: $7,500 (total $31,000); special catch-up for ages 60–63 under SECURE 2.0: $11,250 (total $34,750); total annual additions (employer + employee): $70,000.
The Roth 401(k) option — available through many employers — lets you make after-tax contributions within the same limits. In 2026, you can contribute $23,500 to a Roth 401(k) ($31,000 with catch-up). Unlike a Roth IRA, there are no income limits on Roth 401(k) contributions, making it accessible to high earners who are phased out of direct Roth IRA contributions.
Employer matching is arguably the highest-return investment available — a 50% or 100% match is an immediate guaranteed return. Always contribute at least enough to capture the full match. Common formulas: 50% match on first 6% of salary; or 100% match on first 3–4%. If your employer matches 50% on 6%, that's a free 3% of salary you leave on the table by not contributing the minimum 6%.
After maxing your employer match, consider whether to prioritize Roth 401(k) vs. traditional 401(k). If you expect to be in a higher tax bracket in retirement than today, Roth is more advantageous. If today's bracket is higher than your expected retirement bracket, traditional pre-tax contributions make more sense. Many advisors recommend splitting contributions across both for tax diversification.
Unlike Roth IRAs, Roth 401(k)s historically required RMDs — however SECURE 2.0 eliminated Roth 401(k) RMDs for accounts held by employees who retire. Rolling a Roth 401(k) to a Roth IRA upon retirement also avoids RMDs entirely.
$23,500 for employee elective deferrals. If you're age 50–59 or 63–64, you can contribute an additional $7,500 catch-up for a total of $31,000. Those aged 60–63 get a special SECURE 2.0 catch-up of $11,250 (total $34,750). The overall annual addition limit including employer contributions is $70,000.
Yes. The 401(k) and IRA limits are separate. You can max your 401(k) at $23,500 AND contribute up to $7,000 to a Roth IRA (if within income limits), for a combined tax-advantaged savings of $30,500 per year. This is an excellent strategy for building both pre-tax and post-tax retirement assets.
Excess contributions must be returned to you (along with earnings) by April 15 of the following year to avoid double taxation. Your payroll system typically prevents over-contribution, but monitor carefully if you change jobs mid-year and contribute to two plans. Notify your plan administrator immediately if an excess occurs.