Each year, the Internal Revenue Service (IRS) sets a limit on how much you can contribute to your 401(k). This article covers the annual contribution limit, catch-up contributions, how to decide how much to save, and what happens if you contribute too much.
Each year, the IRS sets the “annual deferral limit.” This is the maximum amount you can contribute across all your employer-sponsored retirement plans. This limit applies to pre-tax and Roth employee contributions for 401(k), 403(b), Starter 401(k), Salary Reduction Simplified Employee Pension (SARSEP), and SIMPLE IRA plans.
The annual participant contribution limit for a standard 401(k) plan is $24,500 for 2026.
Important: Any contributions you get from your employer, like matching or profit sharing, do not count toward this limit.
If you are over the age of 50, you can also make catch-up contributions, which vary based on your age:
Age range
Deferral limit
Catch-up limit
Total
Under age 50
$24,500
N/A
$24,500
Aged 50 – 59
$24,500
$8,000
$32,500
Aged 60 – 63
$24,500
$11,250
$35,750
Aged 64 and over
$24,500
$8,000
$32,500
If you have a Starter 401(k) plan, the maximum you can contribute is $6,000 for the year. If you are over 50, you can contribute an extra $1,000 in catch-up contributions.
Note: If you contribute to more than one employer-sponsored plan, the standard 401(k) deferral limits apply across all your retirement accounts.
There is no one-size-fits-all answer. This is up to you and should be based on your situation. Here are some guidelines to help you decide.
If your company offers employer-matching contributions, try to contribute enough to get the full match. Your employer will match a portion of what you contribute up to a certain percentage. This is one of the easiest ways to grow your retirement savings.
Financial experts often recommend contributing at least 10% – 15% of your income toward retirement savings. The right amount for you may depend on factors like:
Personal financial situation
Age and time until you retire
Investment goals
Outside investment and retirement accounts
Prior investment experience
Tax bracket
Pro tip: If it fits your overall financial plan and budget, consider contributing up to the annual deferral limit every year to make the most of the tax benefits the IRS offers.
You can increase or decrease your contribution rate at any time. Start at a rate that matches your comfort level and goals, and adjust as your situation changes.
If you go over the annual deferral limit, you may be able to get a refund of the extra funds, including any gains or losses. Learn more about what happens if you exceed the annual deferral limit.
This information is general in nature and is for informational purposes only. It should not be construed as investment advice. Investing involves risk and investments may lose value. Consult a qualified financial adviser.