For tax year 2026, the IRS sets the employee contribution limit for 401(k) plans at $24,500 before eligible catch-up contributions. The annual contribution limit for traditional and Roth IRAs combined is $7,500, subject to taxable compensation and other eligibility rules. IRS 2026 announcement
Those limits describe different accounts and different kinds of contributions. Before changing a payroll election or making an IRA deposit, identify the account, the tax year, and the contribution type. That prevents a limit for one purpose from being applied to another.
Separate payroll contributions from other plan money
The employee salary-deferral limit concerns money an employee elects to contribute through a workplace plan. An employer match is a different contribution. The IRS distinguishes employee deferral limits from limits on total employee and employer contributions. IRS explanation of deferrals and matching
As a result, the employee limit is not a complete description of every contribution that can enter a workplace account. Plan terms and other limits can matter, especially when employer contributions are involved.
For an ordinary employee review, compare payroll deferrals with the employee limit and check the plan's own contribution rules. Keep employer contributions identifiable rather than mixing them into the payroll-deferral total.
Check whether a workplace catch-up contribution applies
For tax year 2026, the catch-up contribution limit generally applying to eligible participants age 50 or older in most 401(k) plans is $8,000. The IRS says those participants can generally contribute up to $32,500, including the regular employee contribution.
A higher catch-up limit of $11,250 applies to eligible participants who turn 60, 61, 62, or 63 during 2026. It replaces the ordinary catch-up amount for that eligible age group. IRS catch-up limits
| Workplace-plan item | Tax year 2026 limit |
|---|---|
| Regular employee 401(k) deferrals | $24,500 |
| Usual eligible catch-up contribution, age 50 or older |
