New 2026 limits for 401(k) contributions announced
The U.S. Internal Revenue Service (IRS) on November 13 announced that the annual contribution limits for certain retirement plans will be higher in 2026.
The annual contribution limit for employees participating in what the IRS calls “qualified defined contribution” plans, such as 401(k) and 403(b) plans, will increase to $24,500. This is up from $23,500 in 2025. The IRS calls the $1,000 bump a “cost-of-living" adjustment.
The limit on total employer-plus-employee contributions to defined contribution plans will increase to $72,000 in 2026, up from $70,000 in 2025.
The catch-up contribution limit for employees aged 50 and older who are enrolled in qualified retirement plans will increase to $8,000 from $7,500. However, the super catch-up contribution provision in the SECURE 2.0 Act of 2022, which took effect in 2025, is still in effect. This allows those between the ages of 60 through 63 to contribute $11,250 instead of $8,000 in 2026, unchanged from last year. A catch-up contribution is an added amount that employees aged 50 or older can contribute to their plan beyond the standard annual contribution limit. This helps older workers “catch up” on retirement savings as they approach retirement age.
Employers should share this information with employees of all ages to help them plan financially for the upcoming year, and for the years ahead. This could be done at the same time other benefits information is communicated, since many employers are in the middle of their open enrollment periods. These new IRS limits could also be announced in separate employee communication methods, such as posting fliers around work or on the company intranet.
Key to remember: The IRS increased the amounts employees can contribute to retirement savings accounts in 2026. This information should be shared with employees to help them plan their financial futures.




















































