Every 401(k) contribution limit from 2023 to 2026, side by side
Photo by Atlantic Money · Unsplash
Four straight years of 401(k) limit changes, but not four versions of the same story: some moves were routine inflation math, one was a brand-new SECURE 2.0 tier, and 2026 finally moved a number that had sat still since 2022.
The 401(k) employee deferral limit rose from $22,500 in 2023 to $24,500 in 2026, and the standard catch-up moved for the first time in three years. Here is every limit for the last four years side by side, and what actually drove each year's change — inflation, a rounding threshold, or a brand-new SECURE 2.0 tier that has nothing to do with inflation at all.
The full chart: 2023 through 2026
| Year | Employee deferral | Catch-up, age 50+ | Catch-up, age 60–63 | Max for a 62-year-old |
|---|---|---|---|---|
| 2023 | $22,500 | $7,500 | n/a | $30,000 |
| 2024 | $23,000 | $7,500 | n/a | $30,500 |
| 2025 | $23,500 | $7,500 | $11,250 | $34,750 |
| 2026 | $24,500 | $8,000 | $11,250 | $35,750 |
The "max for a 62-year-old" column did not exist as a distinct figure before 2025 — anyone 50 and older used the same catch-up regardless of exact age until the 60-63 tier arrived. These are the IRS's own published limits for each year, confirmed in its annual retirement plan announcements.
Why 2023 jumped so much, and 2024 barely moved
The 2023 deferral limit rose $2,000 in one year — from $20,500 in 2022 to $22,500 — the largest dollar increase the limit had seen at that point, because it tracks a cost-of-living formula and 2022 carried the highest inflation in four decades. The 50-and-over catch-up moved too, from $6,500 to $7,500. Inflation cooled during 2023, so the 2024 adjustment was smaller: the deferral limit rose only $500, to $23,000, and the catch-up did not move at all, staying at $7,500 for a second year. Neither year involved a change in the rules themselves — both are the same annual inflation formula the IRS has applied since the 401(k) limit was first indexed, just landing on different amounts depending on how much prices moved.
2025: a smaller inflation step, plus a tier that has nothing to do with inflation
The 2025 deferral limit rose another $500, to $23,500, following the same inflation formula as every year before it. What made 2025 different was a provision of the SECURE 2.0 Act that took effect that year and had nothing to do with cost-of-living math: workers who turn 60, 61, 62 or 63 at any point during the year became eligible for a catch-up of $11,250 instead of the standard $7,500 available to everyone else 50 and older. Turning 64 during the year reverts the catch-up back to the standard figure — the enhanced tier is specific to those four ages, not a permanent step up once reached.
2026: the biggest dollar jump since 2023, and the first catch-up move in three years
The 2026 deferral limit rose $1,000, to $24,500 — the largest dollar increase since the $2,000 jump in 2023. The standard 50-and-over catch-up also moved for the first time since 2022, from $7,500 to $8,000. The 60-63 enhanced tier held flat at $11,250, since it is a fixed SECURE 2.0 figure rather than an inflation-indexed one and had not yet been revisited. A separate SECURE 2.0 provision also took effect in 2026, unrelated to any of the dollar limits above: anyone whose prior-year wages with their current employer exceeded $150,000 must now make their entire catch-up contribution as Roth rather than pre-tax, under final IRS regulations issued in September 2025.
How the annual adjustment actually works
None of the four years above involved a discretionary decision by the IRS. The 401(k) deferral limit and the standard catch-up are each indexed to inflation by statute and round down to the nearest $500, which is why the limit sometimes holds flat for a year even when prices kept rising — the accumulated increase has to clear the next $500 threshold before the published number moves at all. That mechanism is also why the standard catch-up sat at $7,500 for three consecutive years: inflation was real each year, it just was not large enough on its own to clear another full increment until 2026. The 60-63 enhanced catch-up does not follow this formula at all — it is a flat dollar figure set directly by the SECURE 2.0 Act, and Congress, not the inflation formula, decides if and when it ever changes.
The IRA limit is on its own clock
It is easy to assume every retirement account limit moves together, and they do not. Over the same four years, the IRA contribution limit went $6,500 (2023), $7,000 (2024 and 2025, unchanged), then $7,500 (2026) — a different pattern from the 401(k) deferral limit above, because IRA limits round in $500 steps and only move once accumulated inflation clears the next threshold. The IRA catch-up for age 50 and over stayed at $1,000 for all three of 2023 through 2025, then rose to $1,100 for 2026 — its first change since the figure was indexed to inflation at all.
What four years of maxing out actually adds up to
Take a worker aged 55 or older — eligible for the standard catch-up but not the 60-63 tier — who contributed the maximum every year from 2023 through 2026:
| Year | Deferral + catch-up | Running total |
|---|---|---|
| 2023 | $30,000 | $30,000 |
| 2024 | $30,500 | $60,500 |
| 2025 | $31,000 | $91,500 |
| 2026 | $32,500 | $124,000 |
That is $124,000 deferred in four years from the limits alone, before counting any employer match or investment growth. The compound interest calculator shows what a lump sum like that is worth after years of growth, and the future value calculator can model what continuing to contribute the current $24,500 limit every year would add on top over a longer working career.
What to check against your own plan
- Confirm your plan actually offers the 60-63 enhanced catch-up before assuming it is available — plans have to opt in, and not every provider added it on day one of 2025.
- If you changed jobs during any of these years, the deferral limit for that year applies across all 401(k) plans combined, not per employer.
- Check whether the new $150,000 wage threshold for mandatory Roth catch-up contributions applies to you for 2026 — it is based on your prior year's wages with your current employer only, not combined wages from multiple jobs.
- Remember that every deferral limit in the chart above is one combined ceiling across traditional and Roth contributions in the same plan, not a separate allowance for each — splitting $24,500 between the two in 2026 still uses the entire limit, the same as putting it all in one or the other.
Sources
- IRS: 401(k) limit increases to $22,500 for 2023, IRA limit rises to $6,500
- IRS: 401(k) limit increases to $23,000 for 2024, IRA limit rises to $7,000
- IRS: 401(k) limit increases to $23,500 for 2025, IRA limit remains $7,000
- IRS: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500
This is general information, not financial or tax advice. These are IRS limits only and do not reflect your specific plan's rules, vesting schedule, or whether your employer's plan has adopted every optional SECURE 2.0 provision. For a decision about your own contributions, speak to a financial adviser or your plan administrator.