401(k) Contribution Limit

The IRS caps how much of your own salary you can defer into a 401(k) each year. For 2026 the elective deferral limit is $24,500 for workers under age 50. Those 50 and older can add a catch-up contribution on top, and the combined total of employee plus employer contributions is bounded by a separate, higher annual additions limit.

This cap is the employee deferral only; an employer match does not count against it, which is one more reason capturing the full match is so valuable. The limit is adjusted for inflation in most years, so it tends to rise over time. Because the figure changes annually, the 401(k) calculator applies the current limit when it projects your balance, giving a reader in a later year a path to the live number. Our retirement on-track playbook shows how contributing up to the limit shapes your retirement trajectory.