The 2026 401(k) checklist means saving up to $24,500 in employee deferrals during Jan. 1-Dec. 31, 2026, plus any catch-up you qualify for.
It also means updating payroll elections, checking plan documents, and watching Roth and job-change rules. An elective deferral is money you ask your employer to place in your 401(k) from your pay, subject to IRS caps. Use this checklist to set the right per-pay amount, confirm your catch-up group, and keep contributions within the annual caps.
Table of Contents
- When does the new limit take effect?
- How much can you save at your age?
- Which documents and payroll records do you need?
- What decisions prevent double tax?
When does the new limit take effect?
McDonald Hopkins reports that the 2026 limits appeared in IRS Notice 2025-67 on Nov. 13, 2025, after a delayed release during the federal shutdown. The limits apply to contributions for Jan. 1-Dec.
31, 2026. The IRS raised the employee elective-deferral limit for 401(k), 403(b), most 457 and TSP accounts to $24,500 for 2026, up $1,000 from $23,500, according to the IRS COLA announcement. That cap covers your own pre-tax and Roth deferrals, not employer contributions. Plan payroll changes early so January paychecks use the new amount.
How much can you save at your age?
Savers age 50 or older can add an $8,000 catch-up in 2026 for a $32,500 employee total, while workers turning 60, 61, 62 or 63 in 2026 qualify for an $11,250 SECURE 2.0 super catch-up for a $35,750 total, shown in the IRS 2026 COLA table. Your plan must allow catch-ups, and eligibility turns on age during the calendar year. Check your birth year before raising your election. The IRS caps total annual additions, including employer match and nonelective contributions, at $72,000 in 2026, or $80,000 with standard catch-up and $83,250 for ages 60-63, limited to 100% of compensation.
Only $360,000 of pay may be considered, up from $350,000, while the highly-compensated-employee pay threshold remains $160,000, the National Association of Plan Advisors reports. High earners near those pay lines should confirm match formulas and testing effects. For example, a 52-year-old can defer $32,500 herself, then receive employer additions up to the $80,000 combined ceiling. A 61-year-old in the super catch-up group can defer $35,750 herself, then receive employer additions up to $83,250 combined. Both combined totals still cannot exceed actual 2026 pay.
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Which documents and payroll records do you need?
Pull your summary plan description, most recent election confirmation, and year-to-date pay stubs. Also pull last year's W-2 or FICA-wage record from the same employer, because it controls Roth catch-up status. Keep each file where you can find it at tax time.
The IRS requires employees to aggregate elective deferrals across all employers' plans toward the $24,500 cap. Workers who change jobs must therefore track combined deferrals across both payroll systems. Ask the new payroll office for the per-pay amount that keeps the combined total under the cap.
- Current 401(k) election rate and effective date
- Pay stubs showing pre-tax, Roth, and catch-up deferrals
- Employer match and nonelective contribution totals
- Prior-employer plan statements if you changed jobs
- Prior-year FICA wages from your current employer
What decisions prevent double tax?
Excess deferrals not withdrawn with earnings by April 15 after the calendar year face tax twice, once when deferred and again when distributed. The IRS also warns that large excess amounts can jeopardize plan qualification. Act before December payroll closes rather than after. Starting Jan.
1, 2026, catch-up-eligible participants whose prior-year FICA wages from the same employer exceeded $150,000 must make catch-ups as Roth after-tax contributions under SECURE 2.0 Section 603, as reported by Captrust on the IRS final Roth catch-up regulations. That rule turns on last year's pay from that employer, not total household income. Confirm whether your plan codes those dollars as Roth. If you overshoot, notify the plan administrator promptly and request correction with earnings by the April 15 deadline. If you are near the cap, lower December deferrals and keep proof of each payroll change.
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