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The IRS Sets the 2026 401(k) Limit at $24,500

Employee deferrals rise by $1,000. The IRA limit moves to $7,500. The ordinary catch-up for workers 50 and older is $8,000.

By Claire Ng, Retirement Columnist

Washington1 min read

Lincoln Memorial, Washington
Lincoln Memorial, WashingtonPhoto by Zetong Li on Unsplash

The Internal Revenue Service said on November 13, 2025, that the amount an employee may defer into a 401(k) in 2026 rises to $24,500, from $23,500 in 2025. The same notice covers 403(b) plans, most governmental 457 plans, and the Thrift Savings Plan. The notice is IR-2025-111.

The annual contribution limit for an IRA rises to $7,500. The catch-up contribution for workers aged 50 and over in most of those workplace plans rises to $8,000, from $7,500. Added to the new deferral limit, that is a workplace contribution of up to $32,500 for someone who is eligible for the ordinary catch-up.

A higher catch-up, under a SECURE 2.0 rule the notice describes, remains $11,250 for employees aged 60, 61, 62, and 63, rather than the $8,000 ordinary catch-up.

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