401k Max Contribution Limits 2026 – Complete Guide

Introduction

2026 401(k) Contribution Limits:

• Employee: $23,500 (up from $23,000 in 2025)
• Catch-Up (age 50+): $7,500
• Total Employee (50+): $31,000
• Combined (Employee + Employer): $70,000 (or $77,500 age 50+)

The 401k Max Calculator ensures you're maximizing tax-advantaged savings.

Employee Contribution Limits

Under Age 50: $23,500 Age 50+: $31,000 ($23,500 + $7,500 catch-up) Age 60-63 (NEW for 2026): $34,500 ($23,500 + $11,000 enhanced catch-up)

Per-Paycheck Calculation:

• Monthly: $23,500 / 12 = $1,958
• Bi-weekly (26 pays): $23,500 / 26 = $904
• Bi-monthly (24 pays): $23,500 / 24 = $979

Total Annual Limit (Employee + Employer)

Under 50: $70,000 Age 50+: $77,500 Age 60-63: $81,000

Includes:

• Your contributions
• Employer match
• Employer profit-sharing
• After-tax contributions (if plan allows)

Example:

• You contribute: $23,500
• Employer match (5%): $5,000
• Profit sharing: $10,000
• Total: $38,500 (under $70k limit) ✅

Mega Backdoor Roth Strategy

If your plan allows after-tax contributions:

Limit: $70,000 total - (your $23,500 + employer match)

Example:

• Your pre-tax: $23,500
• Employer match: $5,000
• Remaining room: $70,000 - $28,500 = $41,500
• Contribute $41,500 after-tax
• Immediately convert to Roth (Mega Backdoor Roth)
• Total Roth IRA equivalent: $41,500/year

Requirements:

• Plan allows after-tax contributions
• Plan allows in-service withdrawals or conversions

Timing Your Contributions

Front-Loading:

• Max out by June
• Captures more market exposure early
• Risk: Miss out on employer match if not paid per-paycheck

Spread Evenly:

• $1,958/month
• Ensures you don't miss match due to hitting limit early
• Safer for most people

Employer Match Example:

• Contribute $23,500 all in Jan-June
• Employer matches 5% per paycheck
• July-Dec: You contribute $0 → No match!
• Lost: ~$2,500 in free money

Solution: Check if employer does "true-up" (makeup match at year-end)

Income Limits? NONE!

Unlike IRAs, 401(k) has NO income limit

Roth IRA: Phased out at $150k (single), $236k (married) 401(k): No limit—CEO making $5M can still contribute $23,500

This is WHY high earners love 401(k)s.

Catch-Up Contributions

Age 50-59 & 64+: +$7,500/year Age 60-63 (NEW): +$11,000/year

Enhanced Catch-Up Justification:

• Final push before retirement
• Kids out of college (hopefully)
• Peak earning years

Example: Age 61, max out enhanced catch-up

• Regular: $23,500
• Enhanced catch-up: $11,000
• Total: $34,500/year

Over 4 years (60-63): Extra $14,000 saved vs. regular catch-up

Roth 401(k) Limits

Same limits as traditional 401(k)

• Roth 401(k): $23,500 (or $31,000 with catch-up)
• Can split between traditional and Roth
• Combined cannot exceed limit

Example:

• $15,000 Roth 401(k)
• $8,500 Traditional 401(k)
• Total: $23,500 ✅

Highly Compensated Employee (HCE) Rules

If you earn \u003e $155,000 (2026): Classified as HCE

Implications:

• May face lower contribution limits if plan fails non-discrimination testing
• Refunds possible if non-HCEs don't contribute enough

Solution: Encourage lower-paid employees to contribute (benefits everyone)

Self-Employed / Solo 401(k)

Different Calculation:

Employee contribution: $23,500 (or $31k with catch-up)

Employer contribution: Up to 25% of compensation

Total limit: $70,000 (or $77,500 age 50+)

Example: Self-employed income $200k

• Employee: $23,500
• Employer (25% of $200k*): $50,000
• Total: $70,000 maxed ✅

*Actual calculation is more complex (based on net self-employment income minus half SE tax)

FAQ

Q: Can I contribute to 401k and IRA in same year? A: Yes. Separate limits. $23,500 (401k) + $7,000 (IRA) = $30,500 total.

Q: What if I change jobs mid-year? A: Limits follow YOU, not employer. If you contributed $15k at Job 1, can only contribute $8,500 at Job 2.

Q: What if I over-contribute? A: Must withdraw excess + earnings by April 15. Otherwise, double-taxed (tax now + again at withdrawal).

Q: Do employer matches count toward my $23,500 limit? A: No. Employer match is separate—only counts toward $70k combined limit.

Q: Can my employer force me to contribute? A: No, but some have auto-enrollment (can opt out).

Related Calculators

• Retirement Savings: /calculator/02-retirement-savings-calculator
• Roth vs Traditional: /calculator/roth-vs-traditional-calculator

Conclusion

Max your 401(k) if you can. It's the single best tax-advantaged savings vehicle for high earners. $23,500/year for 30 years = $2.6M+ (at 7% returns).

Use the 401k Max Calculator to determine your per-paycheck contribution to hit the limit exactly. Don't leave free money (employer match) or tax savings on the table.