401(k) Contribution Limits for 2026

The IRS has officially released the 401(k) and IRA contribution limits for tax year 2026, reflecting inflation adjustments and expanded catch-up opportunities.

These updates apply to 401(k), 403(b), most 457(b) plans, and the Thrift Savings Plan (TSP).

Below is a clear breakdown of what changed — and how to make the most of it.

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2026 401(k) Contribution Limits (Official IRS Numbers)

Employee Contribution Limit

• $24,500
• (Up from $23,500 in 2025)

This is the maximum amount most employees can defer from their paycheck into a 401(k) plan for 2026.

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Catch-Up Contributions (Age 50+)

• $8,000
• (Up from $7,500 in 2025)

If you are 50 or older by the end of 2026, you can contribute this additional amount on top of the standard limit.

• Total employee contribution (50+): $32,500

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Special Catch-Up Contributions (Ages 60–63)

Under SECURE 2.0, individuals aged 60–63 may be eligible for an even higher catch-up contribution if their employer plan allows it:

• Up to $11,250 in catch-up contributions

This provides a powerful opportunity for late-career savers to close retirement gaps.

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IRA Contribution Limits for 2026

The IRS also increased IRA contribution limits for 2026:

• Traditional & Roth IRA: $7,500
• IRA Catch-Up (Age 50+): $1,100

Eligibility for Roth IRA contributions may still be subject to income limits.

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How Nestly Helps You Use These Higher Limits

Knowing the IRS limits is only half the equation.
The real challenge is deciding how much to contribute, when to increase, and how employer match fits in.

That’s where Nestly’s Contribution Co-Pilot comes in.

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Contribution Co-Pilot: Optimize Your 401(k) Contributions

The Contribution Co-Pilot is an interactive tool inside Nestly that helps you fine-tune your retirement contributions with clarity and confidence.

With Contribution Co-Pilot, you can:

• Adjust your annual contribution and instantly see the paycheck impact
• See the IRS contribution cap clearly so you don’t over- or under-contribute
• Automatically step up contributions when you become eligible
• Include employer matching contributions and see real dollar amounts
• Preview how contribution changes affect your overall retirement plan

Instead of juggling percentages, caps, and spreadsheets, Nestly puts everything in one place, in real time.

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Why This Matters in 2026

With higher IRS limits:

• Even modest contribution increases can compound into significant long-term gains
• Employer matches become more valuable than ever
• Catch-up contributions can dramatically improve retirement readiness

Contribution Co-Pilot helps ensure:

• You’re not leaving employer match money on the table
• Your contributions stay aligned with IRS rules
• Your plan automatically adapts as limits change

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Built Directly Into Nestly Advisor

Contribution Co-Pilot works seamlessly alongside:

• The retirement calculator
• The Nestly Score
• Automatically updated IRS contribution limits

No spreadsheets.
No manual recalculations.
No guesswork.

Try Nestl