The IRS recently updated 401(k) employee and employer contribution limits for 2026. EP Wealth shares these changes to help you grow your retirement savings in the year ahead. Reach out to find an advisor near you.

What Is the 401k Employer Contribution Limit for 2026?

At the start of each new year, it’s a smart idea to review your plan for retirement and get up to speed on any changes to annual contribution limits. The Internal Revenue Service sets the maximum amount you and your employer can contribute to your 401(k), and that number increases in 2026.

In 2026, the limit for employee salary deferrals for 401(k)s is $24,500 (up $1,000 from 2025.) Workers aged 50 years and older can also make catch-up contributions of up to $8,000. Employer contributions do not count toward these limits.

The total contribution limit for employers and employees combined is $72,000 or ($80,000 with the catch-up contribution.) The maximum amount your employer can contribute depends on the specific matching program for your 401(k).

Employer 401(k) Matching Programs

When it comes to different employer matching options, a partial 401(k) match is the most common.

With a partial match, the employer matches their employees’ contributions up to a certain percentage. Other employers match employee contributions dollar-for-dollar, usually up to a certain percentage of the employee’s salary.

It’s also possible for employers to provide non-matching contributions. That means the company contributes to an employee’s 401(k) regardless of whether the employee contributes or not.

Whichever matching program your employer offers, we suggest taking advantage of their 401(k) plan. Otherwise, you may be missing out on “free money” and tax benefits that can help you put more away for retirement.

Prioritize Your Retirement Plan in 2026 with EP Wealth Advisors

Do you have questions about your 401(k)? Are you ready to start off the new year with a solid retirement planning strategy? EP Wealth is here to help.

We provide personalized retirement-planning solutions based on your immediate needs and your future goals. Connect online to reach an advisor near you.

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