401(k) Contribution Limits: 2024, 2025, and 2026

Annual 401(k) contribution limits are important to know because they define how much tax-advantaged money you can save in your 401(k) each year. They also provide a clear savings target that can help you plan your retirement contributions.

When it comes to saving for retirement, maximizing your employer sponsored retirement plan contributions can be a powerful strategy for potentially growing your money over time, as well as helping you take advantage of some tax benefits.

Ahead, we'll review the annual contribution limits, how they're determined, and other important considerations to keep in mind while tax planning.

The tables below outline the annual employee elective deferral limits for workplace retirement plans. These limits apply to both traditional and Roth 401(k) contributions. Employer contributions do not count towards these limits. In addition to the standard contribution limits, each table provides catch-up and super catch-up limits for the corresponding tax year. Detailed catch-up rules—including qualifying ages and SECURE 2.0 requirements—are covered further ahead.

Each year, the Internal Revenue Service (IRS) is responsible for setting 401(k) contribution limits. The annual adjustments are typically based on inflation and other factors impacting the economy, ensuring the limits remain relevant to current economic conditions. Typically, new contribution limits for the upcoming year are announced in late fall.

Maximizing your 401(k) contributions, if you can, is one of the most effective ways to build long-term financial security. By contributing up to the annual IRS limits, your investments can experience tax-advantaged compound growth—and the earlier you start, the more time your money has to potentially grow.

One way to consistently reach the maximum 401(k) contribution limit each year is by calculating the monthly (or per-paycheck) amount needed to reach the annual limit and then set up automated contributions in your 401(k) plan. Having automated contributions makes it easier to save since the funds are deducted automatically from your paycheck, and you can gradually increase your percentage each year to stay on track.

If contributing the full IRS limit isn't realistic, aim for what you can, starting with at least enough to capture your company match. A good contribution target is 10%–15% of your take-home pay.

You need to make any 401(k) contributions by the end of the calendar year. However, the sooner you get the money into the account, the more time your money has to potentially grow.

If you have more than one employer and contribute to separate 401(k) plans during the year, the total employee contribution limit applies to you as an individual across all 401(k) plans you participate in during the year.

For instance, if you contribute $15,000 to one company's 401(k) and $10,000 to a different company's 401(k) in 2025, your total employee contribution of $25,000 would exceed the $23,500 employee limit by $1,500.

Although most 401(k) plans have safeguards to prevent excess contributions, it's your responsibility to monitor your total contributions for the year to ensure they don't surpass the contribution limit.

Exceeding the annual contribution limit has specific tax implications. If you change jobs during the year and have more than one 401(k) plan you've contributed to that year or if you make a large contribution from a bonus early in the year you may be more at risk of overcontributing.

If you contribute more than the employee limit, the excess amount, referred to as an excess deferral, could be considered taxable income during the year the contribution was made.

Should you make an excess contribution, contact your plan administrator to determine how to correct it. Generally, you must remove the excess contribution, along with any earnings attributable to it, from your 401(k) plan by April 15 of the following year.

Many employers contribute to employees' retirement through a 401(k) match, nonelective contributions, or profit-sharing contributions. These contributions are distinct from your employee contributions, and do not count toward your annual employee elective deferral limit. They do, however, count toward the total amount that can be contributed to your 401(k). The total amount is known as the annual additions limit.

The IRS sets an overall cap on the total amount that can go into your 401(k) each year, referred to as the annual additions limit.

The annual additions limit includes all of the following combined:

• Your employee elective deferrals (traditional or Roth)
• Any employer matching contributions
• Employer nonelective or profit-sharing contributions
• After-tax contributions (if your plan allows them)

The 2024 annual additions limit is $69,000; the 2025 annual additions limit is $70,000; and the 2026 annual additions limit is $72,000. You can also add to this limit the catch-up contributions related to your age.

This limit is especially relevant for high earners, employees with generous employer contributions, and individuals using after-tax contributions or a mega backdoor Roth strategy.

While most taxpayers will not reach the annual additions limit, understanding it can help you plan your retirement contributions more effectively—particularly if your plan allows additional after-tax savings beyond standard deferrals.

Understanding 401(k) contribution limits can help you make informed decisions about your retirement savings. Reviewing your contributions annually helps ensure you're taking full advantage of potential tax benefits, staying within IRS rules, and positioning yourself for long-term financial security.