The 401k 2026 contribution limit irs is on the minds of millions of retirement savers. As of August 22, 2025, the IRS has not yet announced the official 2026 limits. These figures are expected to be released in late October or November 2025. Until then, projected numbers provide a useful guideline for planning ahead.
What We Know for 2026
Here are the expected limits for 2026 compared to 2025:
- Employee Elective Deferral: Rising from $23,500 in 2025 to $24,500 in 2026
- Catch-Up Contributions (Age 50+): Increasing from $7,500 in 2025 to $8,000 in 2026
- Enhanced Catch-Up (Ages 60–63, SECURE 2.0): Estimated to stay at $11,250, though indexing may push it slightly higher in future years
- Total Annual Contribution (Under 50): Moving from $69,000 in 2025 to $72,000 in 2026
- Total Annual Contribution (Age 50+): Rising from $76,500 in 2025 to $80,000 in 2026
Key Points Summary – Quick Glance
| Contribution Type | 2025 Limit | 2026 Projected Limit |
|---|---|---|
| Employee Deferral | $23,500 | $24,500 |
| Catch-Up (50+) | $7,500 | $8,000 |
| Enhanced Catch-Up (60–63) | $11,250 | $11,250 (indexed) |
| Total Annual (Under 50) | $69,000 | $72,000 |
| Total Annual (50+) | $76,500 | $80,000 |
Important Changes Beginning in 2026
- Roth Catch-Up for High Earners: Starting in 2026, individuals who earned more than $145,000 in the prior year must make their catch-up contributions to a Roth 401(k). These contributions will be made with after-tax dollars.
- SECURE 2.0 Impact: Employees ages 60–63 gain access to a higher optional catch-up contribution, though employers are not required to offer it.
- Inflation Indexing: Many of these limits are tied to inflation and will continue to adjust year after year.
The Reality as of August 2025
At this stage, all the figures above are projections only. The IRS will finalize and publish the official 2026 contribution limits later this year. Until then, retirement savers, employers, and payroll administrators should prepare based on these estimates while waiting for confirmation.
Why It Matters
These changes affect:
- Retirement Savers: Higher limits give individuals more opportunity to save on a tax-advantaged basis.
- Older Workers: Catch-up provisions, including the new Roth rule, provide targeted opportunities for those nearing retirement.
- Employers: Plan administrators will need to update systems and communications to reflect the new thresholds before January 2026.
Closing Thoughts
As of August 22, 2025, we do not yet have confirmed IRS data on the 401k 2026 contribution limit irs. The projected increases provide a strong guide for planning, but final numbers could change slightly once officially announced. Staying informed now can help you prepare for the year ahead.
Disclaimer: This article is for informational purposes only. We are not accountable for any financial decisions made based on these projections. Please consult a professional advisor for guidance tailored to your situation.