For 2026, the ordinary employee deferral limit is $24,500 and the combined defined-contribution limit is $72,000, excluding eligible catch-ups. The ordinary age-50 catch-up is $8,000; the alternative for someone turning 60 through 63 is $11,250. Compensation and plan terms can produce a lower limit.
Employee deferrals are generally shared across an individual’s 401(k) plans. Employer contributions depend on W-2 compensation or adjusted self-employment earnings, not owner distributions. Hiring eligible employees changes the plan’s responsibilities.
An example
Hypothetical: an owner under 50 with $100,000 of S-Corp W-2 compensation and no other deferrals could contribute $24,500 as employee and $25,000 as employer under a plan permitting both, for $49,500 total.
Reviewed October 7, 2026. IRS reference ↗ 2026 retirement limits ↗
This is a general reference. Discuss how the rules apply to your business with your tax professional.