401(k) Contribution Limits for 2025 and 2026
The IRS updates the 401(k) contribution limits each year — see the max you can add to your account in 2025 and 2026.
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In 2025, the 401(k) contribution limit is $23,500. People 50+ can contribute an extra $7,500 ($11,250 if 60-63).
In 2026, the 401(k) contribution limit is $24,500. People 50+ can contribute an extra $8,000 ($11,250 if 60-63).
You can contribute to a 401(k) with every paycheck, but December 31 is the last day to contribute for the tax year.
The 401(k) plan is a fundamental retirement planning tool for many Americans, but there is a limit to how much can be contributed every year. The IRS sets yearly maximums based on the pace of inflation, and exceeding them can result in penalties if not addressed.
401(k) contribution limits 2025 and 2026
The 401(k) contribution limit is $23,500 in 2025. People aged 50 and older can contribute an extra $7,500 as a catch-up contribution. Due to the Secure 2.0 Act, those aged 60, 61, 62 and 63 get a higher catch-up contribution of $11,250. In 2026, the contribution limit is $24,500, with a catch-up contribution of $8,000. Those aged 60, 61, 62, and 63 will have the same higher-catch up contribution of $11,250.
2025 401(k) contribution limits | 2026 401(k) contribution limits | |
|---|---|---|
Employee contribution limit | $23,500 | $24,500 |
Catch-up contribution limit for individuals age 50 and older | $7,500 (or up to $11,250 for those ages 60 to 63). | $8,000 (or up to $11,250 for those ages 60 to 63). |
Maximum employee and employer contribution | Cannot exceed the lesser of $70,000 for those under 50 ($77,500 for those 50 and up) or 100% of employee compensation. | Cannot exceed the lesser of $72,000 or 100% of employee compensation. |
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Roth 401(k) contribution limits
The contribution limits for a Roth 401(k) plan are the same as with a traditional 401(k). If you have access to both accounts, you can contribute to each one as long as your cumulative contributions don't exceed the maximum 401(k) contribution limit.
After-tax 401(k) contribution limits
If you've maxed out your 401(k) contribution for the year as an individual, but your employer's contributions haven't met the combined limit, you may be able to make an after-tax 401(k) contribution. This will depend on your employer's plan provider.
After-tax contributions to a 401(k) plan refer to additional contributions employees can make after reaching their pre-tax or Roth contribution limits. Unlike pre-tax contributions, after-tax contributions do not reduce your taxable income in the year they are made, but they can still grow tax-deferred.
Additionally, they can be part of a mega backdoor Roth conversion, where these after-tax contributions are rolled into a Roth IRA, allowing future earnings to grow tax-free and providing tax-free withdrawals in retirement
» Learn more: A deep dive into after-tax 401(k) contributions
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401(k) max contribution limits for highly compensated employees
People who earn a high salary may be classified as highly compensated employees (HCEs) by the IRS. An employee is considered an HCE if they pass one of the tests below:
Ownership test. A person who owns more than 5% of the company, regardless of compensation.
Compensation test. A person who was in the company's top 20% of pay and received over a set number in compensation. For 2025 and 2026, that number is $160,000.
To ensure that HCEs don't benefit disproportionately to non-HCEs, the IRS requires nondiscrimination testing for all 401(k) plans. The two key tests are the Actual Deferral Percentage (ADP) test, which compares salary deferral rates between the two groups, and the Actual Contribution Percentage (ACP) test, which focuses on employer matching and after-tax contributions.
If the test determines that people across compensation levels aren't participating in a manner the IRS deems proportionate, employee contribution levels for HCEs can be lowered. In these cases, your employer may need to return some of your excess contributions.
What happens if I exceed my 401(k) limit by mistake?
If you contribute too much to your 401(k) and notice your mistake before the tax filing deadline, you can probably correct it with your employer. You’ll need to notify your plan administrator. If your plan allows excess deferral distributions, the plan administrator will return the money and any earnings to you and file a 1099-R for the year the excess contribution was distributed.
If you don’t catch the mistake before the deadline, you may have to pay taxes twice on the amount you contributed over the limit. That’s because 1) the excess contribution is taxable in the year it was made and 2) the IRS will still count that money as taxable in the year it’s distributed. Any earnings are also taxable in the year they are distributed, the agency says.
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