401(k) Contribution Limits for 2026

Tom Gilmour is a senior director of Behavioral Insights and Psychology of Planning for Northwestern Mutual.

Saving for retirement is a journey, and if you're putting money away for your future, you're already doing a great job. According to 2025 data from the Investment Company Institute, there were about 70 million active participants in 401(k) plans in 2025, all taking steps toward the retirement they’re dreaming about.

While a 401(k) has great tax perks, it has some limitations, too. Each year, the IRS limits how much money you (and your employer) are able to contribute to a 401(k). We’re here to help you better understand the 401(k) contribution limits so you can feel confident and in control of your retirement savings strategy.

The basics of 401(k)s

A 401(k) is a type of retirement savings account. Often, a 401(k) is offered as part of a benefit package for full-time employees. The employees can deposit a portion of their paychecks into the 401(k), and in many cases, the employer will also contribute a percentage (sometimes referred to as an “employer match”). Generally, distributions from a 401(k) are permitted after separation of service, disability or death. Some plans allow “in-service” withdrawals at or after age 59½. Withdrawals taken before age 59½ may be subject to taxes and an additional 10 percent early withdrawal penalty unless an exception applies.

A 401(k) can be either a traditional account or a Roth account. For a traditional 401(k), you will contribute funds pre-tax, and the funds will be taxed when you make withdrawals in retirement. For a Roth 401(k), you will contribute after-tax funds, and then when you withdraw money in retirement, you typically will not have to pay taxes on qualified distributions.

How 401(k) contribution limits work

To limit the degree to which high-paid workers are able to take advantage of tax benefits, the IRS puts limits on the amount of money you and you’re employer able to contribute to a 401(k) in any given year.

Individual contribution limits

For an individual, 401(k) contribution limits would apply to any contributions you are making into your own account. The limit applies across all your 401(k) and 403(b) accounts, so if you have multiple accounts, you would be able to contribute the individual maximum among all of your accounts.

Overall limit on contributions

Not only are there limits on the total amount you are able to contribute, but there are also limits on the amount of income that your employer is able to match. Overall contribution limits also apply to small business owners adding contributions to a 401(k) or a solo 401(k).

What happens if you contribute too much to your 401(k)?

Mistakes happen, and if you accidentally exceed the 401(k) contribution limits, don’t panic. You’ll just need to take the excess funds back out of your account to avoid any tax complications or penalties. Though these withdrawals would not be subject to the additional 10 percent tax on early distributions, you will have to pay income tax on the distributions. It is important that you simply work with your plan administrator or payroll team to fix the error right away if you overcontributed.

401(k) contribution limits for 2026

Here are the individual and overall contribution limits for 2026: Remember, these numbers are the maximums, not the expectation.

Individual 401(k) contribution limits for 2026

For an individual, the 401(k) maximum contribution in 2026 is $24,500. If you are 50 or older, and you have maxed out your regular contribution, you will still be able to make an additional $8,000 in catch-up contributions. So, in 2026, if you are 50 or older, you are able to make total individual contributions up to the $32,500 limit. Under changes made in the SECURE 2.0 Act of 2022, employees aged 60, 61, 62 and 63 can contribute up to $35,750 (starting in 2025) because of a higher catch-up contribution limit of $11,250.

If you are contributing to a SIMPLE 401(k) plan (a retirement savings plan offered by companies with 100 or fewer employees), your individual contribution limit is $17,000 for 2026—an increase from the $16,500 limit in 2025. Catch-up contributions for most SIMPLE 401(k) plans are $4,000 if you are 50 or older and $5,250 for ages 60–63. Higher SIMPLE contribution limits may apply for plans with 25 or fewer employees or plans that meet certain requirements under the SECURE 2.0 Act. Every year, the contribution limit typically increases to account for a rise in the cost of living.

Total 401(k) contribution limits for 2026

In 2026, the overall limit on contributions is $72,000 (or $80,000, including catch-up contributions for those 50 and older) or 100 percent of the participant’s compensation, whichever is lower. This would apply to any elective deferrals (excluding catch-up contributions), employer matches or additional employer contributions. In 2026, your employer is also able to match contributions only on an income of up to $360,000 and cannot contribute an amount that is more than 25 percent of your compensation in a given year.

How much should you contribute to your 401(k)?

Because a 401(k) can be a great retirement savings vehicle, you might often hear that you need to "max out" your 401(k), but let's remove that pressure right now. The best amount to contribute is the amount that comfortably fits your life and your monthly budget today.

If your employer offers a match, contributing enough to get that full match is a fantastic goal to work toward. But if you aren't there yet, that is completely OK. Any level of saving is worth celebrating. Making awesome, incremental progress—like bumping up your contribution by just 1 percent each year—can make a massive difference over time.

At Northwestern Mutual, we believe an effective retirement strategy leverages a 401k plan when offered by an employer, but it shouldn't be your only safety net. A truly resilient plan includes a mix of planning and protection. By combining your 401(k) with other financial options—such as a Roth account, an annuity, Social Security, traditional investments and a permanent life insurance policy—in your retirement plan, you can maximize your wealth while protecting it from the unexpected.

This is where a financial advisor can be incredibly helpful: They can help you see how all of these assets work together, celebrate your progress, and guide you toward decisions that protect your future while letting you enjoy your life today.