401(k) Contribution Calculator 2026

Quick Facts - 2026 vs 2025 (Source: IRS Notice 2025-67 and Notice 2024-80)
Limit	2026	2025	Status
Employee elective deferral (IRC §402(g))	$24,500	$23,500	Confirmed
Catch-up contribution age 50+ (IRC §414(v))	$8,000	$7,500	Confirmed
Super catch-up ages 60-63 (SECURE 2.0 §109)	$11,250	$11,250	Confirmed
Personal max (under 50)	$24,500	$23,500	Confirmed
Personal max (50-59 or 64+)	$32,500	$31,000	Confirmed
Personal max (ages 60-63)	$35,750	$34,750	Confirmed
Annual additions limit (IRC §415(c))	$72,000	$70,000	Confirmed
Annual additions with age-50 catch-up	$80,000	$77,500	Confirmed
Annual additions with super catch-up (60-63)	$83,250	$81,250	Confirmed
Compensation limit (IRC §401(a)(17))	$360,000	$350,000	Confirmed
HCE threshold (IRC §414(q))	$160,000	$160,000	Confirmed
Key employee top-heavy (IRC §416(i))	$235,000	$230,000	Confirmed
Roth catch-up wage threshold (prior year FICA wages)	$150,000	$145,000	Confirmed
SIMPLE 401(k) elective deferral	$17,000	$16,500	Confirmed
SIMPLE 401(k) catch-up age 50+	$4,000	$3,500	Confirmed
SIMPLE 401(k) super catch-up ages 60-63	$5,250	$5,250	Confirmed

What is the 401(k) contribution limit for 2026?

For 2026, the IRS employee elective deferral limit under IRC section 402(g) is $24,500, up from $23,500 in 2025. Participants age 50 and over may make an additional $8,000 catch-up contribution (up from $7,500), bringing their personal limit to $32,500. Under SECURE 2.0 Act section 109, participants ages 60, 61, 62, and 63 qualify for an enhanced catch-up of $11,250, bringing their personal limit to $35,750. These limits apply across all 401(k), 403(b), and most 457(b) plans combined. Source: IRS Notice 2025-67, October 2025.

What is the total 401(k) annual additions limit for 2026?

The overall annual additions limit under IRC section 415(c) is $72,000 for 2026, up from $70,000 in 2025. This is the combined cap on employee deferrals (excluding catch-up), employer matching contributions, employer non-elective contributions, and forfeiture allocations. With the age-50 catch-up of $8,000, the personal cap effectively rises to $80,000. With the SECURE 2.0 super catch-up at ages 60 to 63, the personal cap rises to $83,250. The cap also cannot exceed 100 percent of compensation.

How much can my employer match in a 401(k)?

Employer match formulas are set by the plan, not by the IRS. Common safe harbor formulas include 100 percent of the first 3 percent of pay deferred, or 100 percent of the first 4 percent. The most common matching formula in private-sector plans is 50 percent of the first 6 percent of pay deferred. Employer contributions count toward the $72,000 annual additions limit (2026) along with your elective deferrals. The compensation considered for the match is capped at $360,000 under IRC section 401(a)(17), so a $500,000-earner is treated as if they earned $360,000 for match calculation.

Do I need to take the catch-up contribution as Roth in 2026?

Possibly. Under SECURE 2.0 Act section 603, participants age 50 and over with prior-year FICA wages above the inflation-adjusted threshold (set at $150,000 for catch-ups made in 2026) must designate any catch-up contribution as Roth (after-tax). The wage threshold uses prior-year FICA wages from the same employer. The IRS issued final regulations on September 16, 2025 (T.D. 10026) with a transition period that generally postpones full enforcement to plan years beginning after December 31, 2026. Plans without a Roth feature must add one to keep accepting catch-ups from affected employees, or stop catch-ups entirely. Talk to your plan administrator about whether your 2026 catch-ups must be Roth.

What is the difference between traditional and Roth 401(k) contributions?

Traditional 401(k) contributions are pre-tax, meaning they reduce your federal taxable income (and usually state taxable income) in the contribution year. The contribution and growth are taxed as ordinary income on withdrawal in retirement. Roth 401(k) contributions are after-tax, meaning they do not reduce taxable income today, but qualified withdrawals (after age 59 1/2 and a 5-year holding period) are tax-free. Both share the same $24,500 employee elective deferral limit for 2026. Both also have the same age 50 catch-up rules. Roth 401(k) accounts are no longer subject to required minimum distributions during the participant's lifetime under SECURE 2.0 Act section 325. Choosing between traditional and Roth depends on your current marginal tax rate compared to your expected retirement marginal rate.

Am I a highly compensated employee for 401(k) testing?

Under IRC section 414(q), you are a highly compensated employee (HCE) for 2026 plan year nondiscrimination testing if you earned more than $160,000 in 2025 (the prior year, due to the lookback rule), or if you owned more than 5 percent of the employer at any time during 2025 or 2026. The HCE threshold is unchanged from 2025. HCEs may face elective-deferral limits below the $24,500 statutory cap if the plan fails the ADP (Actual Deferral Percentage) test. Safe harbor 401(k) plans, automatic enrollment safe harbor plans, and SECURE Act 2.0 starter 401(k) plans avoid ADP testing. Check with your plan administrator for any HCE-specific limit.

What happens if I exceed the 401(k) contribution limit?

If your combined elective deferrals across all plans exceed the IRC section 402(g) limit ($24,500 for 2026, plus catch-up if applicable), you have an excess deferral. Notify the plan administrator before April 15 of the following year and request that the excess (plus earnings) be distributed back to you. The excess is taxable in the year contributed; the earnings are taxable in the year distributed. If the excess is not withdrawn by April 15, it is taxed twice: once when contributed and again when eventually distributed. The deadline of April 15 is fixed and does not move with your filing extension. See IRS guidance on excess deferrals.

Does the calculator include state income tax savings?

No. This calculator estimates federal income tax savings only on the traditional (pre-tax) portion of your contribution. Most states with an income tax also allow a deduction for traditional 401(k) contributions, but state treatment varies (Pennsylvania, for example, does not allow a state deduction for elective deferrals). FICA taxes (Social Security 6.2 percent and Medicare 1.45 percent) apply to your full compensation regardless of whether you contribute pre-tax or Roth, because elective deferrals are not exempt from FICA under IRC section 3121(a)(5).

Can I contribute to both a 401(k) and an IRA in the same year?

Yes. The 401(k) and IRA limits are separate. For 2026, you can contribute up to $24,500 to a 401(k) (plus catch-up) AND up to $7,500 to an IRA (plus a $1,100 catch-up at age 50, newly COLA-adjusted under SECURE 2.0 Act section 108). However, if you or your spouse are covered by a workplace retirement plan, the deductibility of a traditional IRA contribution phases out at higher incomes per IRC section 219(g). Roth IRA contributions phase out under section 408A(c)(3). Both limits are independent of the 401(k) limit and run in parallel. Use our Roth IRA Contribution Calculator to estimate your IRA-side limit, including MAGI phase-outs and backdoor Roth eligibility.

Does this calculator account for true-up provisions or per-paycheck match limits?

The calculator estimates the full-year match based on your elected deferral rate and the plan formula you select. Some employer plans match per pay period only, which can shortchange employees who max out early in the year. Other plans include a true-up provision that catches up the missed match at year-end. This is plan-specific. If your plan does not have a true-up, spread your contributions across the full year to capture the full match. Check your Summary Plan Description for the specific rule.

Quick Facts: 401(k) Limits (Tax Year 2026)

How This Is Calculated

Step 1: Determine Catch-Up Tier Confirmed

Step 2: Calculate Maximum Employee Deferral Confirmed

Step 3: Calculate Actual Employee Contribution Confirmed

Step 4: Calculate Employer Match Confirmed

Step 5: Annual Additions Check Confirmed

Step 6: Federal Income Tax Savings Confirmed

Assumptions

Common Employer Match Formulas - What They Mean

Real-World Examples

Practitioner Insight (LMN Tax Inc.)

When This Estimate May Not Apply

Frequently Asked Questions

What To Do Next

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