401(k) Contribution Limits Changed This Year and Here Is What You Should Do Now

Core Insights - The IRS has increased the 401(k) employee deferral limit to $24,500 for 2026, up from $23,500 in 2025, which, while appearing modest, can significantly impact retirement savings over time [2][3] - The catch-up contribution for workers aged 50 and older has risen to $8,000 in 2026, allowing total deferrals of $32,500, which can yield approximately $449,000 over ten years at a 7% return [4][7] - The SECURE 2.0 super catch-up for workers aged 60 through 63 is set at $11,250 in 2026, enabling contributions of up to $35,750 annually, potentially generating around $494,000 over a decade, which is $45,000 more than standard contributions for those over 50 [6][7] Contribution Limits - The total additions limit under IRC Section 415(c) has increased to $72,000 in 2026, which caps all contributions to a defined contribution plan, emphasizing the importance of the mega backdoor Roth strategy for high-income earners [7]