If you've been maxing out your workplace retirement account, the number you've been budgeting around is about to change.
The IRS has confirmed that the 401(k) contribution limit is rising to $24,500 for 2026, up from $23,500 in 2025.
That's an extra $1,000 you're allowed to shelter from taxes next year, and it works out to about $38 more per paycheck if you're paid biweekly.
The catch-up contribution for workers 50 and older is staying put at $7,500, so the total ceiling for that group lands at $32,000.
But there's a wrinkle that's been tripping up higher earners since 2025: if you're 60 to 63, a special "super catch-up" lets you stash an extra $11,250 on top of the standard limit.
That window only lasts four years, so it's worth checking whether you qualify before it closes.
For most people, the bigger question isn't the ceiling — it's whether they're capturing the match.
A recent Vanguard study found that roughly one in four workers still isn't contributing enough to get their employer's full match, which is essentially leaving free money on the table.
If your company matches 50% of your contributions up to 6% of salary, a 3% contribution rate means you're forfeiting half of what you could be getting.
Here's a quick way to think about the math.
Say you earn $70,000 and your employer matches dollar-for-dollar up to 4%.
Contributing 4% means $2,800 from you and $2,800 from them — a guaranteed 100% return before any market movement.
No savings account, CD, or Treasury bond comes close to that.
If you can't hit the full $24,500, don't panic.
The often-overlooked move is to bump your rate by just 1% each time you get a raise.
On a $60,000 salary, 1% is $600 a year, or about $23 per biweekly paycheck before taxes.
Many plans also offer auto-escalation, which raises your contribution rate automatically on a set schedule — you can usually switch it on in your plan's app in under two minutes.
One more thing worth knowing: the income limits for Roth 401(k) contributions were eliminated starting in 2024, so high earners can now put money into a Roth account through their workplace regardless of salary.
That's a meaningful shift if you've been locked out of Roth IRAs because you earn too much.
The real deadline to circle isn't December 31 — it's whenever your HR system closes changes for the year, which is often mid-December.
Miss it and you're waiting until the following January to adjust. **Our take:** A rising limit only helps if you actually use it, and most people won't.
The smartest move isn't chasing the max — it's making sure you're at least grabbing every dollar your employer is willing to hand over, then nudging your rate up a little each year.
Final Thoughts
Small, boring, automatic increases beat a heroic January sprint every time.