The Internal Revenue Service has announced increases to the limits on contributions to retirement plans for 2026. Beginning January 1, employees may contribute up to $24,500 into their 401(k) plans. That is a $1,000 jump from the $23,500 limit in 2025.

The catch-up contribution limit for employees ages 50 and older who participate in 401(k) plans and most 457 plans will rise to $8,000 from $7,500. Those aged 60 to 63 can instead save an extra $11,250, based on changes due to SECURE Act 2.0.

The limit on total employer-plus-employee contributions to defined contribution plans will increase to $72,000 in 2026, up from $70,000 in 2025.