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The IRS has announced new 401(k) catch-up contribution limits for 2026.
In its release on Thursday, the agency increased the 401(k) contribution limit to $24,500 for 2026, from $23,500 this year. Catch-up contributions for savers age 50 and older will also increase to $8,000, up from $7,500 in 2025.
The limits apply to 401(k)s, 403(b)s and most 457 plans, along with the federal Thrift Savings Plan.
The IRS also released new individual retirement account limits for 2026, among other updates.
The 401(k) catch-up contributions are even higher for savers age 60 to 63, thanks to a change enacted via Secure 2.0. The catch-up contribution for these investors will remain at $11,250 in 2026, allowing them to contribute up to $34,750 total.
However, most employees aren’t maxing out their 401(k) or regular catch-up contributions, according to Vanguard’s 2025 How America Saves report, which is based on more than 1,400 plans and nearly 5 million participants.
In 2024, nearly all Vanguard plans offered catch-up contributions, but only 16% of eligible workers made these deferrals, the report found.
The IRS announcement comes hours after President Donald Trump signed into law a funding bill to end the longest federal government shutdown in U.S. history. It also comes roughly a month after the agency released dozens of inflation adjustments for 2026, including federal income tax brackets, higher capital gains brackets and provisions impacting families, among others.
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