401(k) Limits 2026: How Much Can You Really Put In? -

The Official 2026 Limits

There are two main buckets: what you put in (Elective Deferral) and the total pot (including company money).

Category	Under 50	Age 50+
Employee Limit	$24,000	$24,000
Catch-Up Contribution	$0	+$7,500
Your Max Payment	$24,000	$31,500
Total (Combined)	$70,000	$77,500

Combined Limit?

The “Total” includes your $24k + Employer Match + Profit Sharing. Even if your boss gives you huge bonuses, the account cannot exceed $70,000/year total.

The “Free Money” Stack

Employer Match $5,000

Example: 50% match on first 4%.

Your Contribution $24,000

Pre-tax deduction from paycheck.

Tax Savings ~$5,280

Deferred tax (22% bracket).

Priority	Action
1. Match	Must Do
2. Max Out	Goal

Traditional 401(k) vs. Roth 401(k)

Most companies now offer both. The contribution limits ($24,000) are shared between them. You cannot put $24k in each.

Feature	Traditional 401(k)	Roth 401(k)
Tax Break	Now (Lowers Taxable Income)	Later (Tax-Free Withdrawal)
Best For	High Earners (Peak Career)	Young Earners (Low Bracket)
Employer Match	Goes here (Taxable)	Can go here (Taxable*)

*New rules (SECURE Act 2.0) allow employers to put matching funds into Roth accounts, but it is taxable income for you immediately.

The Best Order to Invest

Do not blindly max out your 401(k) if you have high-interest debt. Follow this “Financial Order of Operations.”

Step 1: Contribute enough to get the Employer Match. (It’s a 100% return).
Step 2: Pay off high-interest debt (Credit Cards > 6%).
Step 3: Max out a Roth IRA ($7,500) for better fund choices.
Step 4: Go back and finish maxing out the 401(k).

Frequently Asked Questions

Can I contribute to both a 401(k) and an IRA?

Yes! You can put $24,000 into your 401(k) AND $7,500 into your Roth IRA in the same year. They are separate buckets.

What if I change jobs?

The limit applies to YOU, not the employer. If you contributed $10k at Job A, you can only contribute $14k at Job B for the rest of the year.