For 2026, the IRS set the employee elective deferral limit for 401(k), 403(b), and most 457 plans at $24,500, up from $23,500 in 2025 (IRS Notice 2025-67). If you’re 50 or older, you can contribute an additional $8,000 in catch-up contributions, for a total of $32,500. A special higher catch-up of $11,250 applies to those aged 60-63 under SECURE 2.0 provisions.

To actually hit the max, divide the annual limit by your number of pay periods and set your contribution percentage accordingly – many people default to a lower percentage and never revisit it as their salary grows. If your employer offers a match, confirm you’re contributing at least enough to capture the full match before maximizing further, since that match is effectively free money on top of the IRS limit.

If your plan allows after-tax contributions beyond the $24,500 limit and permits in-service withdrawals or in-plan Roth conversions, you may be able to contribute additional after-tax dollars up toward the overall defined contribution plan limit (set at $70,000 for 2025 by the IRS, adjusted annually) – a strategy known as the mega backdoor Roth.

FAQ

Should I max out my 401(k) before contributing to an IRA? Many planners suggest first capturing your full employer match, then considering IRA contributions (especially Roth, if eligible), then returning to maximize the 401(k) – but the right order depends on your tax situation.