2026 401(k) contribution limits
For 2026, the IRS limit on what you can contribute from your own pay (elective deferrals) is $24,500, up from $23,500 in 2025. If you are 50 or older, you can add a catch-up contribution of $8,000, for a total of $32,500. Employees who turn 60, 61, 62 or 63 during 2026 get a higher catch-up of $11,250 instead, for a total of $35,750.
Employer contributions do not count toward your $24,500. They fall under a separate overall limit on everything added to your account (excluding catch-ups): the lesser of 100% of your pay or $72,000 for 2026. Only the first $360,000 of pay counts for plan contribution purposes. Starting in 2026, if your wages from the employer exceeded $150,000 in the previous year, your catch-up contributions must go in as Roth (after-tax) contributions.
This calculator applies the 2026 limits to every future year and keeps them flat. In practice the IRS adjusts them for inflation, so if you plan to contribute the maximum, your real limit will likely be higher than shown.
How employer matching works
A match is usually described as a percentage of your contribution up to a percentage of pay. "50% up to 6%" means your employer adds 50 cents for each dollar you put in, on contributions up to 6% of your salary. On a $75,000 salary, contributing 6% ($4,500) earns a $2,250 match. Contributing more than 6% earns no extra match, but still grows tax-advantaged.
Contributing less than the matched amount leaves money on the table: at 3% on that salary you would get only $1,125. Check your plan's vesting schedule too, because employer contributions may not fully belong to you until you have worked there for a set period.
What drives your balance
Over a long career, investment growth usually becomes the largest part of the balance. In the default example, contributions from you and your employer total about $645,000, but the balance at 67 is about $2.57 million. That growth is in future dollars: after 37 years of 2.5% inflation it is worth about $1.03 million in today's money.
Your contribution rate and when you start matter more than anything else you control. Raising your rate by 1 percentage point each year until you reach 10% to 15% is a common way to build up without a sudden hit to take-home pay.
How each year is calculated
Your contribution = min(contribution % × salary, IRS limit for your age)Employer match = match % × min(your contribution, match cap % × salary)Balance grows monthly at (1 + return)^(1/12) − 1, with 1/12 of the year's contributions added each month- IRS limit (2026) = $24,500 under 50, $32,500 at 50–59 and 64+, $35,750 in the years you turn 60–63
- Salary rises by your yearly raise; pay above $360,000 is ignored for contribution percentages
- Employer contributions are also capped so the total stays within the $72,000 overall limit
Example
- You are 30, earn $75,000, contribute 10% of pay, and your employer matches 50% up to 6%. You have $20,000 saved, expect 3% raises and a 7% annual return, and plan to retire at 67.
- This year you contribute 10% × 75,000 = $7,500. Your employer matches 50% of the first 6% of pay: 0.5 × 4,500 = $2,250.
- Over 37 years, with your salary rising 3% a year, you contribute $496,307 and your employer adds $148,892.
- At a 7% return the balance at 67 is $2,567,695, of which $1,902,496 is investment growth on top of your $20,000 starting balance.
- In today's dollars, after 2.5% yearly inflation, that is about $1,029,818.
Frequently asked questions
What is the 401(k) contribution limit for 2026?
$24,500 of your own contributions. At age 50 or older you can add $8,000 more ($32,500 total), and if you turn 60, 61, 62 or 63 in 2026 the catch-up is $11,250 ($35,750 total), provided your plan allows catch-ups.
Does the employer match count toward the $24,500 limit?
No. The $24,500 applies only to your own deferrals. Employer contributions count toward the overall limit of $72,000 (or 100% of pay, if less) for 2026, which excludes catch-up contributions.
What happens if my percentage would go over the limit?
Your plan stops your deferrals once you reach the limit for the year. For example, a 61-year-old earning $200,000 who elects 20% would want $40,000 but is capped at $35,750. With a 50% match up to 6%, the employer still adds $6,000.
How much should I contribute to my 401(k)?
At minimum, enough to get the full employer match, since that is an immediate return on your money. Beyond that, it depends on your other goals, debts and savings. This calculator lets you compare rates side by side.
Should I choose traditional or Roth 401(k) contributions?
Traditional contributions lower your taxable income now and are taxed when withdrawn; Roth contributions are taxed now and qualified withdrawals are tax-free. The balance projection is the same either way; what differs is the tax you pay and when.
Sources
Last reviewed for 2026. How we calculate.