The IRS adjusts 401(k) contribution limits for inflation most years. Knowing and hitting these limits is the most direct lever you have on tax-deferred wealth building.
2026 401(k) limits
| Contribution type | 2026 limit | Change from 2025 |
|---|---|---|
| Employee elective deferrals | $23,500 | +$500 |
| Catch-up (age 50–59, 64+) | $7,500 | No change |
| SECURE 2.0 catch-up (age 60–63) | $11,250 | New provision |
| Total limit (employee + employer) | $70,000 | +$1,000 |
| Compensation limit for calculations | $350,000 | +$5,000 |
The new SECURE 2.0 super catch-up (ages 60–63)
Starting 2025, employees aged 60–63 can contribute a "super" catch-up of $11,250 (instead of the standard $7,500). This gives 60–63 year olds a total employee contribution limit of $34,750. This is specifically designed to allow final accumulation sprint before retirement.
Does employer match count toward the $23,500?
No. The $23,500 is the employee contribution limit. Employer contributions are separate and count toward the total $70,000 combined limit. A 6% employer match on $90,000 salary = $5,400 employer contribution. Your maximum employee contribution remains $23,500 regardless of employer match.
Strategies for people who can't max
- Contribute at least up to the employer match (guaranteed return)
- Increase contribution by 1% each year — often $50–$100/month that adjusts naturally
- Set contribution to increase automatically each January
- If above the standard limit but below the super catch-up (age 60–63): this is your window — use it
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About the author
Enrique 'Kike' Faúndez is an Information Systems and Management Control Engineer from Universidad de Chile, with master’s degrees in Finance from Universidad de Chile and Industrial Engineering from Pontificia Universidad Católica de Chile. He has 15+ years of experience in regulated financial services across finance, operations, and digital product development. He founded CashControlly in Santiago, Chile, with the conviction that personal financial control should not be a privilege, but an accessible and well-designed tool.
- Master's in Finance, Universidad de Chile
- Master's in Industrial Engineering, Pontificia Universidad Católica de Chile
- Information Systems and Management Control Engineer, Universidad de Chile
- AI and ITIL certifications
- 15+ years in regulated financial services
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