401(k) contribution limits and catch-up contributions for 2026 and 2027

The tax code limits how much can go into a 401(k) each year. There are really several limits working together: one on what an employee can contribute from pay, extra room for older workers, and an overall cap that includes employer money. The IRS adjusts most of these figures each year for the cost of living. This post gives the published figures for 2026 and 2027 and explains how the pieces fit.

The limits at a glance

The 2026 figures are from the IRS page on 401(k) contribution limits. The 2027 figures are from the IRS announcement of November 12, 2026 (IR-2026-136) and the accompanying Notice 2026-66.

These limits apply to traditional and safe harbor 401(k) plans. SIMPLE 401(k) plans have separate, lower limits listed on the same IRS page.

The employee deferral limit

The deferral limit covers what an employee contributes from their own pay: $24,500 for 2026 and $25,500 for 2027. Three points about it are often misunderstood.

It covers traditional and Roth together. An employee can split contributions between pre-tax and Roth in any proportion, but the combined total cannot exceed the limit. Choosing Roth does not create extra room. See traditional vs. Roth 401(k) contributions.

It is a per-person limit, not a per-plan limit. The IRS states that a person generally must add up all elective deferrals made to all plans they participate in. Someone who changes jobs midyear, or works two jobs with separate plans, has one limit across both. Each employer's payroll system only knows about its own plan, so tracking the total falls to the individual. Deferrals to 403(b) plans count toward the same limit. 457(b) plans are an exception: the IRS notes that 403(b) deferrals are combined with those to other plans other than 457 plans.

A plan can set a lower limit. A plan's own terms may cap deferrals at a percentage of pay, and plans sometimes limit contributions by highly compensated employees in order to pass nondiscrimination tests.

Catch-up contributions at 50 and older

If the plan permits, participants who are age 50 or older at the end of the calendar year can contribute an additional amount beyond the regular limit. For 2026 the catch-up is $8,000, which brings the total possible employee contribution to $32,500. For 2027 it is $8,500, for a total of $34,000.

Eligibility is based on age at year-end. Someone who turns 50 on December 31 is eligible for the whole year. The IRS also makes clear that there is no need to be "behind" on savings to use the catch-up; the name is just a label.

The higher catch-up for ages 60 through 63

The SECURE 2.0 Act created a larger catch-up for a narrow age band. According to the IRS catch-up contributions page, a higher limit applies to employees who turn 60, 61, 62 or 63 during the calendar year. For 2026 that limit is $11,250 instead of $8,000. For 2027 it is $11,750 instead of $8,500.

The higher amount replaces the regular catch-up; it is not added on top of it. And the window closes: in the year a participant turns 64, the regular age-50 catch-up applies again.

The Roth requirement for higher earners

A second SECURE 2.0 change affects how catch-up contributions are taxed. The IRS states that, beginning in 2026, participants in plans with Roth features must make catch-up contributions on a Roth basis if their prior-year wages with the plan sponsor exceeded $150,000 (the threshold for 2026).

The threshold is indexed. Under Notice 2026-66, catch-up contributions for 2027 must be Roth for those whose 2026 wages from the employer exceeded $155,000.

Some features of this rule:

• It looks at wages from the employer sponsoring the plan in the prior year, not at total household income.
• It applies only to catch-up contributions. Regular deferrals up to the standard limit can still be pre-tax.
• Workers below the threshold can generally still choose pre-tax or Roth for their catch-up, depending on what the plan offers.

Roth catch-up contributions are made with after-tax pay, so the affected workers lose the upfront deduction on that portion but may later take qualified withdrawals tax-free.

The overall limit, including employer money

Employer matching and other employer contributions do not count against the employee deferral limit. They count toward a separate overall limit on "annual additions" to a participant's account. For 2026, total contributions cannot exceed the lesser of 100% of the participant's compensation or $72,000. With catch-up contributions, the IRS gives the 2026 figure as $80,000, or up to $83,250 for those age 60 to 63. For 2027 the base figure rises to $75,000.

The overall limit matters mainly for people with very large employer contributions, for the self-employed with solo 401(k) plans, and for participants in plans that permit after-tax (non-Roth) employee contributions. For most employees the deferral limit is the one that binds. The post on how an employer match works covers the employer side.

If contributions go over the limit

Exceeding the deferral limit can happen after a job change. The IRS explains that an excess deferral can be corrected by notifying the plan and having the excess, adjusted for earnings, distributed by April 15 of the following year. If the excess is not withdrawn by that date, the IRS notes that it is effectively taxed twice: once in the year contributed and again when eventually distributed.

Where the current numbers are published

The IRS typically announces the next year's limits in the fall and keeps a multi-year table on its cost-of-living adjustments page. IRA limits are separate and are covered in IRA contribution limits and income rules.