The 2026 401(k) employee contribution limit is $24,500, and workers age 50 and older can add a catch-up contribution on top of that — $8,000 for most, or $11,250 for those turning 60 to 63. A separate rule also takes effect January 1, 2026, forcing some higher earners to make their catch-up contributions as after-tax Roth money instead of pre-tax. These changes come from the IRS's annual inflation adjustments combined with catch-up provisions created by the SECURE 2.0 Act. Together they determine how much a worker can defer from each paycheck, how much more older savers can add, and — for some high earners — what tax treatment that extra money gets.
Table of Contents
- What are the 2026 contribution limits?
- Who qualifies for each catch-up amount?
- The new mandatory Roth catch-up rule
- What this means for plan sponsors and savers
- Frequently Asked Questions
What are the 2026 contribution limits?
The IRS raised the employee elective deferral limit for 401(k) plans to $24,500 for 2026, up from $23,500 in 2025, under Notice 2025-67 announced November 13, 2025. This is the cap on how much a worker can set aside from their own salary into a 401(k) in a calendar year, before any employer match or catch-up contributions are counted. The standard catch-up contribution — extra money savers age 50 and older are allowed to defer beyond the regular limit — rises to $8,000 for 2026, up from $7,500, according to Accounting Today. That brings the total allowable deferral for most savers age 50 and up to about $32,500.
A separate, larger catch-up exists for workers aged 60 to 63, created by the SECURE 2.0 Act. That "super catch-up" stays at $11,250 for 2026, unchanged from 2025, because it is indexed separately from the standard catch-up and isn't always set at 150% of it, per NAPA-Net. A worker in that four-year age window who maximizes contributions can put in $35,750 total for the year — $24,500 regular plus $11,250 super catch-up. Outside of 401(k)s, the IRA contribution limit rises to $7,500 for 2026, with a $1,100 IRA catch-up for savers 50 and older. The SIMPLE plan catch-up also rises, to $4,000 from $3,500, according to the same Accounting Today report.
Who qualifies for each catch-up amount?
Eligibility is based on age during the calendar year, not a fixed birthday cutoff. Anyone who turns 50 or older at any point in 2026 qualifies for the standard $8,000 catch-up.
The $11,250 super catch-up is narrower: it applies only to the specific age band of 60, 61, 62, or 63 during the year. That last point matters for planning: the enhanced $11,250 catch-up is only available during the four years a worker is 60 through 63. Once someone turns 64, their catch-up drops back to the standard $8,000 amount, per the totals laid out by NAPA-Net.
- Age 49 or younger: $24,500 maximum deferral, no catch-up.
- Age 50-59: $24,500 plus $8,000 catch-up, for $32,500 total.
- Age 60-63: $24,500 plus $11,250 super catch-up, for $35,750 total.
- Age 64 and older: reverts to the standard $8,000 catch-up, for $32,500 total.
The new mandatory Roth catch-up rule
Starting January 1, 2026, a SECURE 2.0 provision takes effect that changes how some catch-up contributions are taxed. Employees age 50 and older whose prior-year FICA wages from their employer exceeded a set threshold must make all of their catch-up contributions as after-tax Roth money, not pre-tax, according to Newfront. The rule was originally slated to begin in 2024 but was delayed by the IRS. The wage threshold for 2026 is $150,000 in prior-year (2025) FICA wages from that employer, an indexed increase from the $145,000 figure written into the SECURE 2.0 statute, per PlanSponsor. Someone who earned above that amount from a given employer in 2025 will have their 2026 catch-up contributions to that employer's plan automatically redirected to Roth treatment.
The threshold is applied separately at each employer, not on combined income across jobs. A worker who splits time between two employers during the year could fall under $150,000 at each one even if their combined wages exceed it, which affects who actually gets swept into the mandatory Roth rule, according to SVA Certified Public Accountants. Importantly, this rule applies only to catch-up contributions themselves. A high earner's regular deferrals up to the standard $24,500 limit remain unaffected and can still be made pre-tax, per Fox Business. Only the extra catch-up amount — $8,000 or $11,250, depending on age — shifts to Roth for affected earners.
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What this means for plan sponsors and savers
The mandatory Roth catch-up rule creates a structural problem for some retirement plans. Any 401(k) plan that doesn't currently offer a Roth deferral option will be unable to accept catch-up contributions at all from affected high earners in 2026, unless the plan sponsor adds a Roth feature before the rule takes effect, according to Groom Law Group. Workers at smaller employers or older plans should check directly with their HR or plan administrator about whether a Roth option exists.
For savers who do have access to Roth, the practical effect is a tax trade-off: catch-up contributions no longer reduce taxable income in the year they're made, but qualified withdrawals in retirement come out tax-free. A worker over the $150,000 threshold who wants to keep maximizing their catch-up should confirm with their plan whether Roth is available well before year-end, since a plan without it simply can't process the catch-up contribution once the rule is in effect. Savers under the wage threshold, or those at employers already offering Roth 401(k)s, don't need to change anything — their catch-up contributions continue on a pre-tax or Roth basis exactly as they choose today. The age-based dollar limits ($8,000 standard, $11,250 for ages 60-63) apply regardless of income or tax treatment.
Frequently Asked Questions
Does the mandatory Roth catch-up rule affect regular 401(k) contributions?
No. It applies only to catch-up contributions above the $24,500 standard limit; regular deferrals can still be made pre-tax, per Fox Business.
What happens if my 401(k) plan doesn't offer a Roth option?
Affected high earners won't be able to make any catch-up contributions in 2026 unless the plan adds Roth before the rule takes effect, according to Groom Law Group.
Is the $150,000 threshold based on combined wages from all jobs?
No. It's applied separately per employer, so wages from multiple jobs aren't combined for this test, per SVA Certified Public Accountants.
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