401(k) Contribution Limits for 2026

Q: Can I have a 401(k) and an IRA?

Yes. You can have both a 401(k) and an IRA . IRAs can be a good supplement to retirement savings, especially if you’re contributing enough to receive a full match from your employer or you’re planning on maxing out your 401(k). You can make contributions to an IRA until that year's tax filing deadline. » Ready to get started? Find the best IRA account for you.

The IRS updates the 401(k) contribution limits each year — see the max you can add to your account in 2026.

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Updated Apr 21, 2026

Nerdy takeaways

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 2026

The 401(k) contribution limit is $24,500 in 2026. People aged 50 and older can contribute an extra $8,000 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..

	2026 401(k) contribution limits
Employee contribution limit	$24,500
Catch-up contribution limit for individuals age 50 and older	$8,000 (or up to $11,250 for those ages 60 to 63).
Maximum employee and employer contribution	Cannot exceed the lesser of $72,000 or 100% of employee compensation.

» MORE: How much should I actually contribute to my 401(k)?

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.

» MORE: Compare Roth 401(k)s vs. traditional 401(k)s

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 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.

» MORE: How to find a financial advisor who can help maximize your savings

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.

» MORE: Calculate how long your retirement savings might last

Frequently Asked Questions

Does my employer match count toward 401(k) limits?

No, your employer match does not count toward the 401(k) individual contribution limit.

However, there is a combined employee and employer 401(k) contribution limit, and the total combined contributions can't exceed this limit (see the table above).

Can I have a 401(k) and an IRA?

Yes. You can have both a 401(k) and an IRA. IRAs can be a good supplement to retirement savings, especially if you’re contributing enough to receive a full match from your employer or you’re planning on maxing out your 401(k).

You can make contributions to an IRA until that year's tax filing deadline.

» Ready to get started? Find the best IRA account for you.

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Article sources

NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines.

1. Internal Revenue Service. 401(k) Plan Fix-It Guide - The Plan failed the 401(k) ADP and ACP Nondiscrimination Tests. Accessed Nov 13, 2025.
2. Internal Revenue Service. Issue Snapshot - Consequences to a Participant Who Makes Excess Deferrals to a 401(K) Plan. Accessed Nov 13, 2025.

About the authors

Arielle O'Shea

Arielle O’Shea leads the investing and taxes team at NerdWallet. She has covered personal finance and investing for nearly 20 years, and was a senior writer and spokesperson at NerdWallet before becoming an editor. Previously, she was a researcher and reporter for leading personal finance journalist and author Jean Chatzky, a role that included developing financial education programs, interviewing subject matter experts and helping to produce television and radio segments. Arielle has appeared on the "Today" show, NBC News and ABC's "World News Tonight," and has been quoted in national publications including The New York Times, MarketWatch and Bloomberg News. She is based in Charlottesville, Virginia.

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June Sham

June Sham is a lead writer on NerdWallet’s investing and taxes team covering retirement and personal finance. She is a licensed insurance producer, and previously was an insurance writer for Bankrate specializing in home, auto and life insurance. She earned her Bachelor of Arts in creative writing at the University of California, Riverside.