401k Contribution Limits, Catch-Up Contributions, and Maximizing Your Savings

For 2026, the IRS allows employees to contribute up to $24,500 to a 401(k) or 403(b). If you are age 50 or older, you can make an additional catch-up contribution of $7,500, bringing the total to $31,000. A new provision under SECURE 2.0 creates an enhanced catch-up for those ages 60 through 63, allowing an even larger additional contribution of up to $11,250 in 2026, for a combined total of $34,750. These limits apply to employee contributions only; total contributions including employer matches can be as high as $70,000. IRA contribution limits for 2026 are $7,000, with an $8,000 limit for those 50 and older. For those who are behind on retirement savings, maximizing catch-up contributions in the final working years can make a meaningful difference in account balances at retirement.

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