401(k) Contribution Limits (2026)
Annual IRS limits on 401(k) contributions, including catch-up rules that become especially relevant during a layoff.
Current value (2026)
$24,500
401(k) catch-up contribution limit (age 50+): $8,000
401(k) enhanced catch-up contribution limit (ages 60-63, SECURE 2.0): $11,250
Primary source
Historical values
| Year | Value |
|---|---|
| 2026 | $24,500 |
| 2025 | $23,500 |
| 2024 | $23,000 |
What this means if you were laid off
The year of a layoff is the year most people underuse their 401(k). You contributed through your final paycheck. You may have several months left in the year with no employer plan access. But your contribution limit for the full calendar year still applies to whatever you do next.
For 2026, the IRS elective deferral limit is $24,500, per IRS Notice 2025-67. If you are 50 or older, you can contribute an additional $8,000 as a catch-up contribution, bringing the total to $32,500. If you are between ages 60 and 63, the SECURE 2.0 enhanced catch-up limit applies: $11,250 extra instead of $8,000, for a total of $35,750.
These limits are per-employee across all plans. If you contributed $10,000 before your layoff and you start a new job later in the year, your new employer's plan contribution adds to the same annual ceiling.
Two things to act on before your last paycheck: confirm whether your employer's match vesting schedule leaves unvested dollars on the table at separation, and ask whether you can front-load contributions from your final paycheck or any severance paid through payroll. Some employers allow this; many do not.
After separation, you can roll an existing 401(k) balance into an IRA or into a new employer's plan when you start your next job. A direct rollover avoids mandatory 20% federal withholding. The 60-day rollover rule applies if you receive a check rather than a direct transfer.
The limit itself is indexed to inflation and increases in most years. Check this page each January for the confirmed figure for the new plan year.
Frequently asked questions
- What is the 401(k) contribution limit for 2026?
- $24,500 for employees under age 50, per IRS Notice 2025-67. Employees age 50 or older may contribute an additional $8,000 catch-up, for a total of $32,500. Employees ages 60-63 may contribute an enhanced catch-up of $11,250 under SECURE 2.0, for a total of $35,750.
- Can I still contribute to my 401(k) after I am laid off?
- No, not to the former employer's plan. Contributions require an active employment relationship. You can roll the existing balance to an IRA, but new contributions to the old plan stop at separation.
- Does severance pay count toward 401(k) contributions?
- It depends on your plan document. Some plans allow voluntary contributions from severance paid through the regular payroll system. Many do not. Check your plan's definition of compensation or ask your benefits administrator before your final check issues.
- What is the deadline to contribute to an IRA for 2026?
- April 15, 2027 (the tax filing deadline for the 2026 tax year). IRA contributions are not tied to your employment status and can be made until the deadline.
- What happens to my 401(k) balance when I am laid off?
- It remains invested and belongs to you. You can leave it in the former employer's plan if the balance exceeds the plan's minimum, roll it to an IRA, or roll it into a new employer's plan when you start your next job.
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Calculate your severanceLast verified: 2026-05-04. Not legal, financial, or tax advice. Methodology.