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401(k) catch-up contribution limits 2026: IRS update
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The IRS has announced new 401(k) catch-up contribution limits for 2026.
In its release on Thursday, the agency increased the 401(k) contribution limit to $24,500 for 2026, from $23,500 this year. Catch-up contributions for savers age 50 and older will also increase to $8,000, up from $7,500 in 2025.
The limits apply to 401(k)s, 403(b)s and most 457 plans, along with the federal Thrift Savings Plan.
The 401(k) catch-up contributions are even higher for savers age 60 to 63, thanks to a change enacted via Secure 2.0. The catch-up contribution for these investors will remain at $11,250 in 2026, allowing them to contribute up to $34,750 total.
The IRS also released new individual retirement account limits for 2026, among other updates.
However, most employees aren’t maxing out their 401(k) or regular catch-up contributions, according to Vanguard’s 2025 How America Saves report, which is based on more than 1,400 plans and nearly 5 million participants.
In 2024, nearly all Vanguard plans offered catch-up contributions, but only 16% of eligible workers made these deferrals, the report found.
The IRS announcement comes hours after President Donald Trump signed into law a funding bill to end the longest federal government shutdown in U.S. history. It also comes roughly a month after the agency released dozens of inflation adjustments for 2026, including federal income tax brackets, higher capital gains brackets and provisions impacting families, among others.
