Retirement account limits rise with inflation, and 2026 brings more headroom: the employee 401(k) deferral limit is $24,500.00, with an additional $8,000.00 catch-up for workers 50 and older. The IRA limit is $7,500.00.
| Account | 2026 limit | Catch-up (50+) |
|---|---|---|
| 401(k) / 403(b) / most 457 (employee deferral) | $24,500.00 | +$8,000.00 |
| Traditional / Roth IRA | $7,500.00 | +$1,100 |
Maxing out in practice
- $24,500.00 across 26 bi-weekly paychecks is about $942.31 per paycheck — set the percentage so you don't hit the cap early and miss late-year employer match (unless your plan has a true-up).
- Pre-tax contributions cut your tax bill now: at a 24% marginal rate, maxing a 401(k) saves roughly $5,880.00 in federal tax.
- Model your own growth with the 401(k) calculator and Roth IRA calculator.