401(k) contribution limits have been raised for 2026. Learn how the updated IRS thresholds may affect your retirement strategy. EP Wealth can help you navigate your options. Locate an advisor near you.

What Is the Maximum 401k Contribution for 2026?

There is good news in 2026 if you have an employer-sponsored 401(k) plan. The IRS recently raised the limits for employer-plus-employee combined contributions for the new year. In 2026, the annual contribution limit for 401(k) and 403(b) plans for employees under 50 will increase to $24,500, up from $23,500 in 2025.

Together, you and your employer can contribute a total of $72,000 in 2026, a $2,000 increase from 2025.

Employees who are age 50 or older can contribute an extra $8,000 in “catch up” funds the same calendar year, boosting their total 2026 combined contribution limit to $80,000 ($72,000 + $8,000). Employees who are age 60-63 may be eligible for a “super catch-up” contribution of up to about $11,250, allowing an even larger total in 2026 (for example, $24,500 + $11,250 = $35,750 in elective deferral alone).

Employer Contribution Limits for SIMPLE 401(k)s

Contribution limits for SIMPLE 401(k) plans differ from those of traditional 401(k)s. A SIMPLE 401(k) is designed for self-employed individuals and small businesses with 100 or fewer employees.

For the 2026 tax year, the IRS increased the contribution limits as follows:

• Employee elective deferral limit (under age 50): $17,000 (up from $16,500 in 2025)
• Catch-up contribution limit (age 50+): $4,000, allowing participants aged 50 and above in a SIMPLE plan to contribute up to $21,000 total in 2026 (elective deferral portion).
• “Super catch-up” contribution limit (ages 60–63): $5,250, available under SECURE 2.0 for participants whose plans adopt this provision, allowing even higher total elective deferrals during those years

Employer contribution requirements remain the same. Employers must either:

1. Match up to 3% of the employee’s compensation, or
2. Make a 2% nonelective contribution for each eligible employee, regardless of whether the employee contributes.

Solo 401(k) Contribution Limits for 2026

If you’re a freelancer or independent contractor, you still have the potential to save for the future and reap the tax benefits of a traditional retirement plan. A Solo 401(k) is designed for self-employed individuals (and their spouse, if participating) who have no other full-time employees.

To be eligible to invest in a Solo 401(k), you must have income from your own business and you must be the only employee (other than your spouse if applicable).

• You can contribute as both the employee and the employer (profit-sharing) for a combined total limit of $72,000 in 2026 for participants under age 50.
• As the “employee” portion, you can defer up to $24,500 in 2026 (if under age 50).
• If you are age 50 or older, you can make a “standard” catch-up contribution, adding $8,000, taking your total contribution potential (employee + employer) up to $80,000 for 2026.
• If you are age 60–63 and your plan allows the “super catch-up” (under SECURE 2.0 Act), you may be eligible to add $11,250 in catch-up contributions, pushing the maximum to $83,250 for 2026.

Multiple 401(k) Plans

If you have access to multiple 401(k) or 403(b) plans through different (unrelated) employers, you must combine your employee elective deferrals across all those plans and not exceed the IRS annual employee limit (e.g., $24,500 for 2026 if under age 50). However, each employer-sponsored plan can still receive employer contributions up to that employer’s applicable limit, subject to the plan’s annual additions cap.

Is it Possible to Overcontribute to Your 401(k)?

Yes, it is possible to overcontribute to your 401(k). If your total employee deferrals across all 401(k) plans exceed the IRS annual limit, the excess is considered an “excess deferral” and must be corrected. Excess contributions that are not withdrawn by April 15 of the following year are taxed twice—once in the year they were made and again when withdrawn in retirement.

If you participate in multiple workplace retirement plans, your EP Wealth advisor can help you coordinate your contributions so you stay within IRS limits and potentially minimize unnecessary taxes.

Have Questions About Your 2026 Retirement Saving Plan? EP Wealth Advisors Have the Answers

There is no one-size-fits-all strategy for saving for retirement. Certain variables can impact your contributions, including your earnings total and requirements that are specific to each plan.

For clarity on your own retirement vehicles, schedule an appointment with a retirement planning advisor at EP Wealth. We provide tools and support to help you make informed decisions about your retirement strategy.  Connect online to get started today.

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