The IRS has released its updated 401(k) contribution limits for the 2026 tax year. These annual adjustments are driven by inflation and are applied automatically under formulas built into the tax code. For savers, that means contribution limits typically rise gradually over time.
For 2026, the standard employee contribution limit for 401(k) plans will increase by $1,000, bringing the new maximum to $24,500. This is the amount any eligible worker, regardless of age, can contribute through salary deferrals. For individuals age 50 or older, the IRS continues to allow additional “catch-up” contributions. That catch-up amount will hold at $8,000, raising the total allowable contribution for workers 50+ to $32,500.
There’s also an important perk for workers in their early 60s. Under recent rules, individuals ages 60 through 63 qualify for a special “super” catch-up contribution. In 2026, their limit rises even higher to $35,750.
However, new requirements established under the SECURE 2.0 Act of 2022 add an important twist. Beginning with these updated limits, catch-up contributions are no longer universally treated the same. If your prior-year Social Security wages exceeded $145,000, any catch-up dollars you contribute must now be designated as Roth contributions.
That distinction has tax implications. Roth 401(k) contributions are made with after-tax dollars, meaning you pay income tax on that money in the year you contribute it. As a result, higher-earning workers will not receive a current-year tax deduction for their catch-up contributions. And because their income already places them in a higher marginal tax bracket, they may feel the impact of the required Roth treatment more acutely.
The upside is that Roth contributions grow tax-free, with withdrawals in retirement also tax-free. Still, workers who rely on catch-up contributions to reduce taxable income should evaluate how this change might affect their tax planning and overall retirement strategy.