Intro: You’re not behind — you’re just running on last year’s settings.
If you opened payroll and thought, “What should my 401(k) % be in 2026?”, this is fixable in one pass. This is rarely a “money discipline” problem. It’s usually:
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Policy moves: IRS inflation adjustments change limits each year.
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Software defaults: payroll keeps your old rate until you change it.
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Cash-flow reality: you can’t max everything, so order matters.
Official source for all 2026 retirement-plan dollar limits: [IRS Newsroom: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500].
Key takeaways (scan this first)
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401(k)/403(b) employee deferral (2026): $24,500
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401(k) catch-up (50+): +$8,000 / (60–63): $11,250
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IRA limit (2026): $7,500; 50+ catch-up: +$1,100
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HSA family limit (2026): $8,750; 55+ catch-up: +$1,000
Snippet-ready summary table (2026)
| Account Type | 2026 Limit | 50+ Catch-up | Total Potential (50+) |
|---|---|---|---|
| 401(k) / 403(b) | $24,500 | +$8,000 | $32,500 |
| IRA (Roth/Trad) | $7,500 | +$1,100 | $8,600 |
| HSA (Family) | $8,750 | +$1,000 (55+) | $9,750 |
Note (high earner alert): the table above shows employee limits. The “total” 401(k) plan limit (employee + employer + after-tax) is a different number — see the Pro Tip in Step 1.
Step 0: Diagnosis (pick your lane in 30 seconds)
A) Do you have a workplace plan (401(k)/403(b)/457/TSP)?
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Yes → Step 1
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No → Step 4 (IRA + HSA first; then consider self-employed options)
B) Are you age 50+?
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Yes → Step 2 (catch-up rules)
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Age 60–63 → Step 2 (special catch-up amount)
C) Are you HSA-eligible (HDHP)?
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Yes → Step 3
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No → skip Step 3
D) Is your income near Roth IRA phase-outs?
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Single/HOH: $153,000–$168,000 (2026)
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Married filing jointly: $242,000–$252,000 (2026)
If yes, don’t skip Step 5.
Step 1: Set your 401(k) rate so you “land” at the limit (without losing match)
The 2026 number that matters (employee deferral)
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$24,500 for 401(k)/403(b)/governmental 457/TSP elective deferrals (2026).
Action plan (no guesswork):
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Count your remaining paychecks in 2026 (often 24 or 26).
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Do $24,500 ÷ paychecks = your per-paycheck target.
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In payroll, set Contribution Type: Traditional or Roth and adjust %/amount to hit that target by year-end.
Why: Maxing too early can reduce later employer match if your plan doesn’t true-up.
💡 Pro Tip for High Earners: Don’t ignore the “Total” limit (Section 415(c))
If you’re a high earner aiming to go beyond the $24,500 employee deferral, the number pros watch is the Section 415(c) “annual additions” limit — the total that can go into your 401(k) in a year from:
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Your employee contributions (including after-tax, if your plan allows)
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Employer match / profit sharing
For 2026, the Section 415(c) limit is $72,000.
Why you care: this is the ceiling that usually determines whether a “Mega Backdoor Roth” (after-tax → Roth conversions inside the plan) is even possible.
Important nuance: eligible catch-up contributions (50+ / 60–63) are generally treated separately and can allow you to go above the $72,000 total, depending on plan rules.
[IRS PDF: Notice 2025-67 — 2026 Amounts Relating to Retirement Plans and IRAs]
Step 2: Catch-up contributions (where money gets left on the table)
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Age 50+ catch-up (most workplace plans): +$8,000 (2026)
→ Many can reach $32,500 in employee deferrals total. -
Age 60–63 catch-up: $11,250 (2026)
Payroll gotcha for high W-2 wages: the Roth catch-up wage threshold used for 2026 is $150,000 (FICA wages), which can affect how catch-ups must be treated in applicable plans.
Step 3: HSA — the stealth retirement account (if you’re eligible)
2026 HSA contribution limits
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Self-only: $4,400
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Family: $8,750
[IRS PDF: Notice 2026-05 — 2026 HSA contribution limits and HDHP amounts]
Catch-up (55+)
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+$1,000 catch-up contribution (if eligible).
Best-practice order (for many households):
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401(k) up to the employer match
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Max HSA
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Back to 401(k) toward your target
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IRA/Roth IRA if eligible
Step 4: IRA (Traditional & Roth) — easy to do, easy to mess up on eligibility
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IRA limit (2026): $7,500
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Age 50+ catch-up: +$1,100
If you have a workplace plan, your Traditional IRA deduction can phase out based on income. The IRS lists the 2026 phase-out ranges in the same update.
Step 5: Roth IRA income limits — confirm before you contribute
2026 Roth IRA phase-out ranges:
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Single / Head of Household: $153,000–$168,000
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Married filing jointly: $242,000–$252,000
If you’re near the top of the range, don’t “just fund it” and hope. Use a strategy that fits your tax situation and avoids corrections.
[IRS Newsroom: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500]
FAQ (Featured Snippet Targets)
Q1) What is the 401(k) contribution limit for 2026?
The employee elective deferral limit for 401(k)/403(b)/governmental 457/TSP plans is $24,500 in 2026.
Q2) What is the “total” 401(k) limit for high earners in 2026?
The Section 415(c) annual additions limit for defined contribution plans is $72,000 in 2026 (employee + employer + after-tax, depending on plan design).
Q3) What are the Roth IRA income limits for 2026?
Roth IRA eligibility phases out at $153,000–$168,000 (single/HOH) and $242,000–$252,000 (married filing jointly) for 2026.
Q4) What are the HSA limits for 2026?
HSA limits are $4,400 (self-only) and $8,750 (family) in 2026, plus a $1,000 catch-up for eligible individuals age 55+.
Wrap-up (the shortest path to “I did this right”)
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Set 401(k) contributions to land at $24,500 across the year — don’t accidentally lose match.
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If you’re a high earner, the expert move is tracking Section 415(c): $72,000 total (where Mega Backdoor Roth may live).
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Confirm Roth IRA eligibility before funding to avoid recharacterizations/corrections.
Disclaimer
Disclaimer: This article is for informational purposes only and does not constitute financial or tax advice. Contribution limits and tax laws are subject to change. Consult with a qualified CPA or financial advisor before making decisions.