401(k) contribution limits for employees are increasing in 2026. Find out how much you can put away for retirement this year from the financial advisors at EP Wealth. 

What Is the Individual 401k Contribution Limit for 2026?

You may be able to save more for retirement in 2026, thanks to IRS changes to contribution limits for 401(k), 403(b), and most 457 plans. The employee elective deferral limit is $24,500 for 2026 for participants under age 50.

If you are age 50 or older, you may be able to make an additional $8,000 in catch-up contributions in 2026, if your plan permits. For participants ages 60–63, some plans may offer a different option: a “super catch-up” created under SECURE 2.0 that has a higher limit of up to $11,250 in 2026.

For 2026, the maximum combined employee and employer contributions are capped at $72,000. Eligible participants may also make catch-up contributions, which are in addition to this limit — up to $8,000 for those age 50+ or $11,250 for those age 60–63 under the SECURE 2.0 super catch-up provision.

The specific amount your employer contributes will depend on your plan’s matching formula, which might be dollar-for-dollar or a percentage of your contributions.

A financial advisor at EP Wealth can clarify the guidelines and restrictions for your individual 401(k).

SIMPLE 401(k) and Solo 401(k) Contribution Limits for 2026

For SIMPLE 401(k) plans, the 2026 employee elective deferral limit is $17,000, with an additional $4,000 catch-up available for participants age 50 and older. Participants ages 60–63 in SIMPLE plans that adopt the SECURE 2.0 provision may also have access to a $5,250 super catch-up contribution, creating the potential for even higher elective deferrals in those years.

For Solo 401(k)s (for self-employed individuals with no full-time employees other than a spouse), you can contribute in both the employee and employer roles. In 2026, the combined contribution limit is generally $72,000 for those under age 50, with the possibility of reaching $80,000 with the standard catch-up at age 50+, and potentially higher (such as $83,250) for eligible individuals ages 60–63 whose plans allow the super catch-up contribution.

Penalties for Contributing Too Much

Knowing your 401(k) contribution limit may help you avoid costly mistakes. For 2026, if your total employee elective deferrals across all 401(k) plans are more than $24,500 (or more than your applicable limit if you are eligible for catch-up contributions), you may be treated as having an “excess deferral.”

If you overcontribute, the excess amount generally needs to be removed, along with any related earnings, as soon as possible. In most cases, the excess deferral should be returned to you by the plan administrator by April 15 of the following year. The excess contribution is usually taxable in the year it was made, and the earnings distributed with it are typically taxable in the year they are returned. If amounts are not corrected on time, they can face less favorable tax treatment, including the possibility of being taxed more than once, and in some cases may also be subject to the IRS’s additional tax on early distributions if taken before age 59½.

Some 401(k) plans have safeguards that help prevent overcontributions. However, if you change jobs during the year or contribute to multiple workplace plans, it can be easier to lose track of how much you have deferred. Monitoring your contributions and coordinating with your plan providers can help you stay within the IRS limits.

Are You on Track to Meet Your Retirement Goals? EP Wealth Can Help

The increase in employee contribution limits is just one of several key updates that could influence your retirement strategy. EP Wealth financial planners monitor regulatory changes closely and can help you determine whether adjustments are needed.

We take a holistic approach to financial planning, working with you to refine your retirement plan as market conditions evolve or as your income and circumstances change.

EP Wealth is here to guide you on your retirement planning journey. Locate an advisor near you.

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