The two limits you need to know
The IRS sets two different 401k contribution limits. Most people only know about the first one:
| Limit type | 2026 amount | Who it applies to |
|---|---|---|
| Employee elective deferral limit | $23,500 | Your contributions only |
| Total annual additions limit (415 limit) | $70,000 | Your contributions + employer match + profit sharing |
| Catch-up contribution (age 50+) | +$7,500 | Added to the employee limit |
| Special catch-up (age 60–63) | +$11,250 | Replaces the $7,500 catch-up for this age group |
What this means in practice: you can contribute up to $23,500 of your own money, and your employer can add their match on top — as long as the combined total doesn't exceed $70,000. For most employees, the $70,000 combined limit is so high that it's never a factor.
Example: You earn $100,000 and contribute the maximum $23,500. Your employer matches dollar-for-dollar up to 5%, adding $5,000. Total combined: $28,500 — well below the $70,000 combined limit. Your employer match had zero effect on your personal contribution limit.
Can I contribute more because my employer matches less?
No — your personal contribution limit is $23,500 regardless of what your employer contributes. Even if your employer contributes nothing, you still can't put more than $23,500 of your own money into the 401k.
What if my employer is very generous?
Some employers — particularly large tech companies or those with profit-sharing plans — contribute significant amounts that could approach the $70,000 combined limit. For highly compensated employees receiving large profit-sharing contributions, the combined limit can become relevant. But for the vast majority of employees, the personal $23,500 limit is the only one that matters.
The 2026 catch-up contribution rules
The SECURE 2.0 Act introduced a new "super catch-up" provision for people aged 60–63. In 2026:
- Age 50–59: Can contribute $23,500 + $7,500 catch-up = $31,000
- Age 60–63: Can contribute $23,500 + $11,250 super catch-up = $34,750
- Age 64+: Back to standard $7,500 catch-up = $31,000
Employer match contributions are still in addition to these amounts and don't count toward these personal limits.
Should I try to max out my contribution?
If you can afford to, yes — but it's not necessary to benefit from the 401k. The most important thing is to contribute at least enough to capture your full employer match. Beyond that, contributing more is always better from a tax-efficiency and retirement-readiness standpoint, but maxing out at $23,500 is a high bar and not realistic for most people.
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