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Updated for 2024 and 2025. Salary deferrals are contributions an employee makes, in lieu of salary, to certain retirement plans 401 (k) contribution limits for 2026 the 401 (k) contribution limit for 2026 is $24,500 for employee salary deferrals, and $72,000 for the combined employee and employer contributions
Some 401(k) rules mean you can only consider a certain amount of compensation for contribution limits, employer matching, and elective deferrals.
This means you can hit much higher total contribution amounts if your income supports it The maximum amount the irs allows you to contribute. Additionally, contributing a high percentage of your paycheck to your 401 (k) can cause you to quickly max out to the allowable annual deferral limit and, potentially, lose out on employer match contributions The information provided herein is general in nature and is for informational purposes only.
The tax advantages of workplace accounts can give retirement savings room for potential growth You give, and you get. Employees could contribute up to $23,500 to their 401(k) retirement savings plans for tax year 2025 For tax year 2026, employees can contribute up to $24,500.
Two annual limits apply to contributions
A limit on employee elective salary deferrals
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