Your 401k contribution limits for 2026. Supercharge your wealth.
401(k) contribution limits for 2026 are $24,500 per person, up from $23,500 in 2025. All 401(k) participants aged 50 and over can make a standard catch-up contribution of $8,000, for a total of $32,500.
Under the SECURE 2.0 Act, participants reaching ages 60, 61, 62, and 63 in 2026 are eligible for a “super catch-up” contribution of $11,250 instead of the standard $8,000 amount, allowing for a total employee contribution of $35,750.
What is a 401k?
A 401(k) is a workplace retirement plan in which both employees and employers make contributions. It is one of the most effective ways to save for retirement because contributions are made automatically through the company payroll. You can choose a specific dollar amount or a percentage of your salary to invest.
Most plans offer a range of investment options, typically including stock mutual funds and fixed-income assets. Additionally, many companies offer a 401(k) match up to a certain percentage of your pay—essentially “free money” for your future. In most cases, you must contribute your own money to receive this employer match.
Types of Contributions
There are three primary ways to contribute to a 401(k) in 2026:
- Traditional (Tax-Deferred): Contributions are made with pre-tax dollars, lowering your taxable income today. You pay taxes only when you withdraw the money in retirement.
- Roth 401(k): Contributions are made with after-tax dollars. While there is no immediate tax break, your investments grow tax-free, and qualified withdrawals in retirement are also tax-free.
- After-Tax: Some plans allow contributions beyond the $24,500 limit. These do not provide an immediate tax deduction, but they are often used for “Mega Backdoor Roth” strategies.
Mega Backdoor Roth Conversion
A Mega Backdoor conversion is a strategy for high earners to save more than the standard elective deferral limit. It involves making after-tax contributions to your 401(k) and immediately converting them to a Roth 401(k) or Roth IRA. This allows for significantly higher tax-free growth potential.
401k Contribution Limits for 2026
The IRS adjusts 401(k) limits annually based on cost-of-living and inflation. These limits apply to 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan (TSP).
| Limit Type | 2026 Limit | Change from 2025 |
| Individual Elective Deferral | $24,500 | +$1,000 |
| Standard Catch-up (Age 50+) | $8,000 | +$500 |
| Super Catch-up (Ages 60–63) | $11,250 | No Change |
| Total Limit (Employee + Employer) | $72,000 | +$2,000 |
| Total Limit (Age 50+ incl. Catch-up) | $80,000 | +$2,500 |
| Total Limit (Age 60-63 incl. Super Catch-up) | $83,250 | +$2,000 |
| Annual Compensation Limit | $360,000 | +$10,000 |
Important 2026 Rule: If you earned more than $150,000 in 2025, the IRS now requires your catch-up contributions to be made to a Roth 401(k) (after-tax).
Solo 401k Contribution Limits 2026
A Solo 401(k) is designed for business owners with no employees (except perhaps a spouse). It allows you to contribute as both the employee and the employer, significantly increasing your savings capacity.
- Employee Contribution: Up to $24,500 (plus applicable catch-ups).
- Employer Contribution: Up to 25% of your compensation.
- Total Limit: The combined total cannot exceed $72,000 ($80,000 for ages 50+ or $83,250 for ages 60-63).
- Compensation Limit: The maximum compensation used to calculate your contribution is $360,000.
If you participate in multiple 401(k) plans (e.g., a day job and a side business), your total employee deferrals across all plans cannot exceed the $24,500 limit.
Navigate the 2026 Changes with Confidence
The 2026 IRS updates – from the “Super Catch-Up” to the new Roth requirements for high earners add new layers of complexity to your retirement strategy. At Babylon Wealth Management, we specialize in helping busy professionals and business owners optimize their 401(k) plans and overall wealth.
Whether you are looking to implement a Mega Backdoor Roth or need a customized retirement roadmap, our fee-only, fiduciary advisors are here to help. [Schedule a consultation with Babylon Wealth Management today] to ensure your retirement plan is built for 2026 and beyond.
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