You can contribute $24,500 to 401(k) plans in 2026, up from $23,500, the IRS announced in November.
The Internal Revenue Service also issued guidance regarding all cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2026, which you can see here: https://www.irs.gov/pub/irs-drop/n-25-67.pdf
Now, the annual contribution limit for employees who participate in 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings plan is $24,500.
You can also contribute $7,500 to your IRA, up from $7,000 in 2025. The IRA catch-up contribution limit for individuals aged 50 and older was amended under the SECURE 2.0 Act of 2022 to include an annual cost-of-living adjustment.
If you are 50 and over, you have the option to make “catch-up” contributions to 401(k) and similar plans, so you can contribute $8,000 next year, up from $7,500 this year. That’s means a 401(k) saver who is 50 or older will be able to contribute a maximum of $32,500 to their retirement plan annually, starting in 2026. Employees between the ages of 60 and 63 will be allowed catch-up retirement plan contributions of up to $11,250 annually, unchanged from 2025.
