What Is the 401(k) Elective-Deferral Limit?

The 2026 $24,500 limit applies to the employee's basic elective deferrals, not to every dollar that can enter a 401(k).

That distinction separates Section 402(g) from the much larger Section 415 annual-additions calculation.

For 2026, most 401(k) participants can make basic elective deferrals up to:

$24,500.^[1][2][3]

The practical ceiling can be lower because of:

• available compensation
• plan-specific limits
• nondiscrimination rules.^[2][5]

But an employer match does not consume that $24,500.

Neither does a profit-sharing contribution.

A voluntary after-tax contribution is not a Section 402(g) elective deferral either.

The basic employee-deferral limit measures a specific contribution category.

Key Takeaways

• The regular 2026 employee elective-deferral ceiling is $24,500.^[1][2][3]
• Traditional pre-tax and designated Roth 401(k) deferrals share that one basic limit.
• Section 402(g) generally follows the individual, so applicable elective deferrals under multiple plans must be combined.^[1][6]
• Deferrals to both 401(k) and 403(b) arrangements generally draw from the same personal Section 402(g) ceiling.^[6][10]
• TSP elective deferrals are included in the Section 402(g) calculation.^[3]
• Governmental 457(b) deferrals use a separate statutory limit, allowing a participant in both a 401(k)/403(b) and a governmental 457(b) to have separate basic deferral capacity under the respective rules.^[10][12]
• Employer matching and nonelective contributions do not count toward the $24,500 basic employee ceiling.
• Voluntary after-tax employee contributions generally fall outside Section 402(g), although they can consume Section 415 room and affect ACP testing.
• A plan can impose a lower limit than federal law permits.^[5]
• HCE status does not reduce the Section 402(g) dollar amount, although ADP testing can create a separate practical restriction.
• For 2026, an otherwise eligible participant age 50 or older outside the special 60–63 range can have up to $8,000 of catch-up capacity.^[3][8]
• Participants attaining ages 60, 61, 62 or 63 during 2026 can have an $11,250 catch-up limit.^[3][8]
• For 2026, the Roth catch-up rule generally applies when relevant 2025 wages from the sponsoring employer exceeded $150,000.^[3][8][9]
• An excess deferral should generally be distributed, with allocable income, by April 15 following the year of deferral.^[4][5][6]
• Leaving an excess pre-tax deferral in the plan after that deadline can result in taxation in both the contribution year and the later distribution year.^[4]

What Is an Elective Deferral?

An elective deferral begins with a choice.

The employee could receive compensation currently or elect to have the employer contribute the amount to the retirement plan instead.

For a 401(k), the most familiar forms are:

• traditional pre-tax elective deferrals
• designated Roth elective deferrals.^[6]

Both draw from the same Section 402(g) basic limit.

The tax treatment differs.

The employee-limit treatment does not.

Traditional and Roth Share One $24,500 Limit

Assume a participant contributes during 2026:

Traditional 401(k):

$15,000

Roth 401(k):

$9,500

Total regular elective deferrals:

$24,500

The regular employee ceiling has been reached.

The participant cannot add another $24,500 merely by switching tax treatment.

Traditional and Roth are two ways to tax the contribution.

They are not two separate employee limits.

The Split Can Be Anything the Plan Permits

A participant could instead use:

• $24,500 traditional / $0 Roth
• $0 traditional / $24,500 Roth
• $8,000 traditional / $16,500 Roth
• another permitted combination

subject to:

• compensation
• plan terms
• catch-up eligibility
• other applicable limits.

The combined regular elective-deferral amount is the relevant Section 402(g) number.

Employer Match Does Not Use Section 402(g) Room

Suppose the employee contributes:

$24,500

and the employer contributes a match of:

$8,000

The participant now has:

$32,500

of contributions from those two sources.

That does not mean the employee exceeded the $24,500 elective-deferral limit.

Section 402(g) counts the employee's elective deferrals.

The employer match belongs in the separate Section 415 annual-additions calculation explained in INV-099.

Profit Sharing Does Not Reduce the Employee Limit Either

Add:

Employer profit-sharing contribution:

$15,000

Total contributions from the three sources:

• employee elective deferral: $24,500
• employer match: $8,000
• employer profit sharing: $15,000

Total:

$47,500

Section 402(g) remains satisfied because the employee's regular elective deferrals are $24,500.

Section 415 asks whether the entire applicable contribution stack fits within its separate ceiling.

Do not subtract employer contributions from the employee's Section 402(g) capacity.

Voluntary After-Tax Contributions Are Different From Roth Deferrals

This distinction matters in plans that support the strategy commonly called a mega backdoor Roth.

Designated Roth 401(k) contribution

An elective deferral.

Counts toward Section 402(g).

Voluntary after-tax employee contribution

Not an elective deferral under the ordinary Section 402(g) rule.

Does not consume the $24,500 basic elective-deferral limit.

It can count toward:

• Section 415 annual additions
• ACP testing
• plan-specific contribution limits.

"After tax" does not mean "Roth."

INV-047 explains the broader strategy.

Example: $24,500 Roth Plus Voluntary After-Tax

Participant makes:

Designated Roth elective deferrals:

$24,500

Voluntary after-tax employee contributions:

$20,000

The participant has used:

$24,500 of Section 402(g) room

not:

$44,500

The $20,000 after-tax contribution still matters under Section 415 and the plan's own rules.

The two employee contribution types belong to different legal buckets.

The $24,500 Limit Follows the Individual

This is the rule most likely to cause an excess when someone changes jobs or works for more than one employer.

Section 402(g) looks at the individual's applicable elective deferrals.^[6]

It does not give a fresh basic limit simply because the second payroll system belongs to a different company.

Example: Two Unrelated 401(k) Plans

Employee contributes to Employer A's 401(k):

$18,000

Later in 2026, the employee contributes to unrelated Employer B's 401(k):

$10,000

Total regular deferrals across both employers:

$28,000

2026 Section 402(g) limit:

$24,500

Amount over the limit:

$3,500

Each employer's payroll can look correct in isolation.

Neither withheld more than $24,500.

The individual still has a $3,500 excess deferral.

Two Correct Payroll Systems Can Produce One Wrong Personal Result

Employer A may know only:

$18,000 contributed here

Employer B may know only:

$10,000 contributed here

Neither employer necessarily knows the employee's complete outside-plan history.

That is why a participant with multiple jobs or a midyear job change should track cumulative elective deferrals personally rather than relying exclusively on each employer's payroll stop.

Section 402(g) follows the person.

Payroll controls usually follow the employer.

Day Job Plus Solo 401(k)

A business owner can encounter the same problem.

Day-job 401(k) deferral:

$20,000

Solo 401(k) employee deferral:

$4,500

Total across the two plans:

$24,500

The basic 2026 limit is fully used.

The solo business may still have employer-contribution capacity under its own Section 415 analysis if the employers are unrelated and compensation supports the contribution.

INV-030 explains that distinction.

A second employer role can create additional employer-contribution room without creating another basic employee-deferral limit.

How 403(b) Deferrals Interact With a 401(k)

A person contributing to both plan types generally combines those applicable elective deferrals for Section 402(g).^[6][10]

For example:

401(k) elective deferral:

$20,000

403(b) elective deferral:

$4,500

Combined:

$24,500

The ordinary 2026 ceiling has been reached.

Another $5,000 to the 403(b) would not be permitted merely because it is a different type of workplace plan.

403(b) Has an Additional Specialized Catch-Up Rule

Certain long-service 403(b) participants can qualify for the separate 15-year-of-service catch-up under Section 402(g)(7).^[6][10]

That rule can change the 403(b) elective-deferral calculation before age-based catch-up rules are applied.

It does not create a general extra 401(k) limit.

A participant combining:

• 401(k)
• 403(b)
• 403(b) 15-year catch-up
• age-based catch-up

needs the 403(b)-specific ordering rules rather than a simple $24,500 subtraction.

TSP Contributions Use the Same Personal Ceiling

Notice 2025-67 includes TSP elective deferrals in the Section 402(g) limitation.^[3]

A federal employee with:

• TSP elective deferrals
• an outside 401(k) from another employer

should not assume each plan receives a separate basic $24,500 limit.

The person-level rule still matters.

Governmental 457(b) Is a Separate Lane

Governmental 457(b) plans use a separate statutory deferral limit under Section 457 rather than Section 402(g).^[10][12]

That can produce a result that looks surprising next to the 401(k)/403(b) rule.

Example: 401(k) Plus Governmental 457(b)

Assume a participant is eligible for both plans and has sufficient compensation.

401(k) basic elective deferral:

$24,500

Governmental 457(b) deferral:

$24,500

Combined salary deferrals:

$49,000

That does not automatically violate Section 402(g), because the governmental 457(b) amount uses a separate Section 457 limit.^[10][12]

Each plan still has its own terms and other applicable restrictions.

Do Not Generalize the 457(b) Rule to Every Deferred-Compensation Arrangement

The separate-limit treatment belongs to the statutory 457 framework.

A nonqualified deferred-compensation arrangement or another workplace plan can have different rules.

Use the plan type before deciding whether deferrals share Section 402(g).

The name:

deferred compensation

is not enough.

SIMPLE Contributions Add Another Specialized Layer

Treasury Regulation 1.402(g)-1 includes elective employer contributions to SIMPLE retirement accounts in the statutory definition of elective deferrals.^[6]

SIMPLE plans also have their own lower salary-reduction limits.

A person participating in both a SIMPLE arrangement and another plan should not assume the two dollar limits operate independently without coordination.

Cross-plan SIMPLE cases deserve a calculation using the applicable SIMPLE and Section 402(g) rules rather than a generic 401(k) example.

Compensation Can Limit Deferrals Below $24,500

IRS describes the basic 2026 elective-deferral ceiling as the lesser of:

• $24,500
• 100% of the employee's compensation.^[2]

A participant earning $18,000 cannot generally elect:

$24,500

of salary deferrals from $18,000 of compensation.

There is not enough compensation to defer.

Example: Lower Compensation Controls

Employee compensation:

$16,000

Federal basic dollar limit:

$24,500

Ignoring other plan restrictions, the employee cannot defer more compensation than is available.

The practical ceiling is therefore below the federal dollar amount.

Payroll taxes and other mandatory deductions can create an even lower operational amount.

The Plan Can Set a Lower Deferral Limit

The federal maximum is not a promise that every plan allows every participant to defer that amount.

A plan can impose:

• a lower percentage limit
• a lower dollar limit
• payroll-election constraints consistent with applicable law.^[5]

Example:

Plan caps elective deferrals at:

20% of compensation

Employee earns:

$80,000

Plan-level maximum:

$16,000

even though Section 402(g) permits a higher federal dollar amount.

The plan document matters.

ADP Testing Can Restrict HCEs Without Changing Section 402(g)

INV-084 and INV-087 explain this distinction.

Suppose an HCE contributes:

$24,000

in 2026.

That is below the $24,500 Section 402(g) ceiling.

The plan later fails ADP testing.

A corrective distribution can return part of the HCE's deferral.

The reason is:

nondiscrimination testing

not:

individual elective-deferral overage under Section 402(g).

Calling both results "over the 401(k) limit" hides the legal difference.

A Safe-Harbor 401(k) Can Remove the Ordinary ADP Constraint

A properly designed and operated safe-harbor 401(k) can avoid ordinary ADP testing for the covered deferral arrangement under the applicable rules.

That can make the $24,500 federal ceiling more directly relevant to HCEs.

It does not raise Section 402(g).

Safe harbor changes the nondiscrimination layer.

It does not create a larger basic employee limit.

INV-053 covers safe-harbor plans.

Catch-Up Contributions Sit Above the Basic Limit

A participant who is age 50 or older by the end of the calendar year can be catch-up eligible if the plan permits catch-up contributions.^[8]

For 2026, the ordinary age-50+ catch-up amount is:

$8,000.^[3][8]

That can raise total employee elective deferrals to:

$24,500 + $8,000 = $32,500

for an eligible participant outside the special age-60-through-63 range, subject to compensation and plan rules.

Ages 60 Through 63 Have a Higher 2026 Catch-Up

SECURE 2.0 created a higher catch-up amount for participants attaining age:

• 60
• 61
• 62
• 63

during the year.^[3][8]

For 2026:

$11,250

is the higher limit.^[3][8]

Potential employee elective deferrals:

$24,500 + $11,250 = $35,750

when the participant is otherwise eligible.

Age Is Determined During the Calendar Year

A participant who turns 60 at any point during 2026 falls within the age-60-through-63 range for the year, subject to the applicable catch-up rules.

A participant who turns:

64

during 2026 does not use the special 60-through-63 amount for that year.

If otherwise catch-up eligible, that participant returns to the ordinary age-50+ catch-up amount.

The higher amount is tied to the ages attained during the year, not the participant's age on the date of each payroll.

Catch-Up Contributions Are Not Just "Everything Above $24,500"

Section 414(v) treats elective deferrals as catch-up contributions when they exceed an applicable limit.^[8][9]

That limit can include:

• the Section 402(g) dollar ceiling
• the plan's own elective-deferral limit
• an ADP-related limit.^[8]

A catch-up-eligible participant can therefore have catch-up treatment even when total deferrals have not yet exceeded $24,500.

Example: Plan Percentage Limit Creates Catch-Up First

Assume:

• participant is catch-up eligible
• compensation: $100,000
• plan ordinary deferral limit: 20%
• federal Section 402(g) limit: $24,500

Ordinary plan limit:

$20,000

If the plan's catch-up terms permit it, deferrals above $20,000 can qualify as catch-up contributions even before the participant reaches $24,500.^[8]

Catch-up is defined against applicable limits, not only the federal dollar ceiling.

2026 Roth Catch-Up Requirement

For 2026, IRS guidance states that participants whose relevant prior-year wages from the sponsoring employer exceeded:

$150,000

are generally subject to the statutory Roth catch-up requirement when the plan offers catch-up contributions and has the necessary Roth feature.^[3][8][9]

The threshold uses relevant 2025 FICA wages for determining 2026 treatment.^[3][9]

INV-056 covers the Roth catch-up framework in depth.

Roth Catch-Up Does Not Create More Catch-Up Capacity

A high-wage participant subject to the 2026 Roth rule does not receive a larger catch-up limit merely because the contribution must be Roth.

The tax character changes.

The applicable catch-up dollar limit does not.

For a 55-year-old participant:

$8,000

remains the general 2026 catch-up amount.

For an eligible participant age 60 through 63:

$11,250

remains the higher amount.

The $24,500 Limit Is Not the $72,000 Limit

INV-099 explains Section 415.

The distinction can be summarized this way:

One participant can encounter all four in the same year.

Example: $24,500 Deferral, $47,500 Employer Contribution

Assume sufficient compensation.

Employee basic elective deferral:

$24,500

Employer contribution:

$47,500

Total annual additions:

$72,000

The participant has:

• fully used the regular Section 402(g) allowance
• reached the Section 415(c) dollar ceiling

before catch-up treatment.

The two limits happen to be fully used in the same example.

They are still legally separate.

A Withdrawal Does Not Reopen Section 402(g) Room

Suppose a participant contributes:

$10,000

early in the year.

The participant later takes a permitted distribution or withdrawal of:

$10,000

That does not generally erase the earlier elective deferral from the Section 402(g) total.^[6]

The rule measures elective deferrals made during the taxable year.

Ordinary withdrawals are not negative deferrals.

Example: Withdrawal Followed by New Deferrals

Employee defers:

$10,000

takes a permitted $10,000 distribution

then contributes:

$20,000

later in the same year.

Section 402(g) elective deferrals total:

$30,000

before considering catch-up status.

The withdrawal did not reset the employee's contribution meter.

What Is an Excess Deferral?

An excess deferral is generally the amount by which an individual's elective deferrals for the taxable year exceed the applicable Section 402(g) limit.^[6]

For most individuals, the taxable year is the calendar year.

The excess can arise:

• entirely inside one employer's plans
• across plans of the same employer
• across unrelated employers
• after a midyear job change.

The source changes who can detect the problem.

It does not change the person-level limit.

Example: Excess Across Two Unrelated Employers

Employer A 401(k):

$14,500

Employer B 401(k):

$13,000

Combined:

$27,500

Basic 2026 Section 402(g) limit:

$24,500

Overage:

$3,000

Assume no catch-up eligibility.

The participant should identify the excess and request a corrective distribution from a plan that permits excess-deferral distributions.^[4][6]

A Plan May Not Know About the Other Employer

Treasury regulations permit a plan to treat the participant as having notified it automatically when the excess can be determined from that plan and other plans of the same employer.^[6]

That does not solve an excess created by an unrelated employer the plan cannot see.

The participant may need to notify the plan and identify the amount to be returned.^[4][6]

This is one of the rare 401(k) limits where participant-level recordkeeping can be indispensable.

April 15 Is the Critical Correction Date

Treasury Regulation 1.402(g)-1 permits correction after year-end when the excess is designated and distributed no later than:

April 15

following the close of the individual's taxable year, or an earlier date specified in the plan.^[6]

IRS participant guidance gives the same practical deadline.^[4]

The corrective payment includes:

• the excess deferral
• allocable income.^[4][6]

A Plan Must Permit the Distribution

The Treasury regulation states that a plan needs language permitting excess-deferral distributions to use the correction mechanism, and a plan is not required to permit those distributions in every cross-plan circumstance.^[6]

That makes early coordination important when the excess arose across unrelated plans.

The participant should not assume any chosen plan will automatically refund the amount.

Check the plan's procedure.

Timely Correction Avoids the Worst Tax Result

When an excess deferral is withdrawn by April 15, IRS states that the excess is not included in gross income again in the year it is distributed.^[4]

For a pre-tax excess:

• the excess is taxable for the year it was deferred
• allocable earnings are generally taxable in the year distributed.^[4]

The corrective distribution is not subject to the 10% additional tax on early distributions when corrected timely.^[4]

Leaving the Excess After April 15 Can Cause Double Taxation

IRS is explicit about the consequence.

A pre-tax excess left in the plan after the April 15 deadline is taxable in the year of deferral and does not create basis that protects the later plan distribution.^[4]

When the amount is eventually distributed, it can be taxed again.

That is the practical double-tax problem.

Late Excesses Can Also Create a Plan Qualification Problem

Section 401(a)(30) requires a qualified cash-or-deferred arrangement to prevent elective deferrals above the applicable Section 402(g) limit within the plan's required operational framework.^[5][6]

IRS warns that an uncorrected excess can affect plan qualification.^[4][5]

The risk is especially direct when the excess was made within one employer's plan or plans and the sponsor should have controlled it.

Cross-employer excesses create a different detection problem, but they still need participant-level correction.

Excess Deferral Is Not the Same as an ADP Excess Contribution

Terminology matters.

Excess deferral

Section 402(g).

Individual's elective deferrals exceed the applicable personal limit.

Excess contribution

Often used in the Section 401(k) ADP-testing correction context.

HCE deferrals exceed what the nondiscrimination test permits.

A participant can receive an ADP refund while having stayed below $24,500.

A participant can also exceed the personal elective-deferral ceiling even when the plan passes ADP testing.

Do not use the two correction procedures interchangeably.

Excess Annual Addition Is a Third Problem

INV-099 covers Section 415.

A participant might have:

• no individual elective-deferral overage
• no ADP excess
• a Section 415 excess annual addition

because employer contributions, after-tax contributions and forfeitures pushed the combined annual-additions stack above its ceiling.

Three limits.

Three different diagnostic questions.

Correction Ordering Matters When Catch-Up Eligibility Exists

For a catch-up-eligible participant, first determine whether some elective deferrals qualify for catch-up treatment before labeling the remaining amount an excess under the personal deferral limit.^[8][9]

Example:

Participant age 55 defers:

$30,000

Basic 2026 ceiling:

$24,500

Potential amount above basic limit:

$5,500

General catch-up capacity:

up to $8,000

If the plan permits catch-up and other requirements are met, that $5,500 can fit inside the catch-up layer rather than being an excess deferral.

Example: Age 55 Exceeds Catch-Up Too

Participant age 55 defers:

$34,000

Basic limit:

$24,500

General catch-up:

$8,000

Potential permitted total:

$32,500

Remaining excess:

$1,500

assuming compensation and plan terms support the otherwise permitted amounts.

The correction target is $1,500, not the full $9,500 above the basic limit.

Example: Age 61 in 2026

Participant age 61 defers:

$36,500

Basic limit:

$24,500

Higher age-60-through-63 catch-up:

$11,250

Potential permitted employee total:

$35,750

Amount requiring correction:

$750

subject to the applicable Roth catch-up and plan rules.

Age changes the calculation.

Employee Monitoring Is Most Important During Job Changes

A participant who works for one employer all year often has a payroll system programmed to stop regular deferrals at the plan's applicable threshold.

The risk rises when the participant:

• changes employers
• holds two jobs
• contributes to a solo 401(k) plus day-job plan
• contributes through both 401(k) and 403(b) arrangements
• contributes to TSP plus another applicable plan.

Each payroll system sees only part of the person-level picture.

A Practical Midyear Job-Change Calculation

Before electing a deferral rate at the new employer:

1. Pull year-to-date elective deferrals from the prior employer's final paystub or plan record. 2. Separate: - regular elective deferrals - catch-up amounts, if clearly identified. 3. Identify contributions to any other applicable plan. 4. Subtract regular elective deferrals from the remaining 2026 basic limit. 5. Add catch-up capacity only if eligible. 6. Check whether the new plan imposes a lower limit. 7. Monitor the final payrolls rather than assuming the stop will coordinate across employers.

The formula is simple.

The data collection is the hard part.

Example: New Employer Election Rate

Prior-employer regular deferrals:

$16,000

Remaining 2026 regular-deferral capacity:

$24,500 − $16,000 = $8,500

New employer has five pay periods left.

If gross eligible pay is $10,000 per pay period, an employee wanting to use the remaining basic limit would need an average deferral of:

$8,500 ÷ $50,000 = 17%

before considering:

• plan percentage limits
• catch-up eligibility
• payroll rounding
• other deductions.

A 50% election would not create more federal room.

It would only reach the remaining room faster.

Payroll Should Track More Than One Limit

For each participant, payroll and plan administration should distinguish:

One field labeled:

YTD 401(k)

cannot safely represent all of these.

Frequently Asked Questions

What is the 401(k) elective-deferral limit for 2026?

For 2026, regular elective deferrals are capped at $24,500, subject to compensation, plan terms and catch-up rules.^[1][2][3]

Is the $24,500 limit per employer?

Generally no. Section 402(g) is an individual limit, so applicable elective deferrals across multiple plans must generally be combined.^[1][6]

Do traditional and Roth 401(k) contributions share the limit?

Yes. Regular traditional pre-tax and designated Roth elective deferrals draw from the same personal $24,500 ceiling.^[6]

Does employer match count toward $24,500?

No. Employer match does not use the employee's Section 402(g) basic deferral room. It does count toward the applicable Section 415 annual-additions calculation.

Does profit sharing count toward $24,500?

No. Employer profit-sharing contributions are not employee elective deferrals.

Do voluntary after-tax 401(k) contributions count toward $24,500?

Generally no. They can count toward Section 415 annual additions and ACP testing instead.

How do 403(b) contributions interact with my 401(k) limit?

Generally yes. Applicable elective deferrals to both are combined for the individual's Section 402(g) limit.^[6][10]

Does a governmental 457(b) share the 401(k) limit?

Generally no. A governmental 457(b) uses a separate Section 457 deferral limit.^[10][12]

Does TSP share the Section 402(g) limit?

Yes. TSP elective deferrals count in the individual Section 402(g) calculation.^[3]

What is the catch-up limit for 2026?

Eligible participants age 50 or older outside the special 60–63 range can use up to $8,000 of catch-up capacity in 2026.^[3][8]

What is the age-60-through-63 catch-up limit for 2026?

$11,250 for eligible participants attaining age 60, 61, 62 or 63 during 2026.^[3][8]

Does an HCE have a lower $24,500 limit?

No. HCE status does not create a lower Section 402(g) dollar ceiling. ADP testing or plan terms can separately restrict the amount the HCE ultimately keeps in the plan.

Can my plan set a lower contribution limit?

Yes. IRS guidance notes that plan terms can impose a lower dollar or percentage limit.^[5]

What is an excess deferral?

It is generally the amount by which the individual's applicable elective deferrals exceed the Section 402(g) limit for the taxable year.^[6]

What is the deadline to correct an excess deferral?

Generally April 15 following the year of deferral, or an earlier deadline specified by the plan.^[4][6]

What happens if the excess stays in the plan after April 15?

A pre-tax excess can be taxed in the year contributed and again when later distributed. An uncorrected excess can also create plan qualification concerns.^[4][5]

Can I correct an excess from either of two unrelated employer plans?

Treasury regulations allow an individual to designate excess deferrals to a plan that permits these corrective distributions. Plan terms and procedures matter, so the participant should contact the plan promptly.^[4][6]

Does taking a normal withdrawal create new contribution room?

No. A withdrawal does not generally erase elective deferrals already made for Section 402(g) purposes.^[6]

The Person-Level Deferral Check

For 2026, total the participant's applicable regular elective deferrals from:

1. traditional 401(k)
2. Roth 401(k)
3. 403(b)
4. federal TSP
5. other arrangements included by Section 402(g)

Then compare the regular-deferral total with:

$24,500

Apply catch-up capacity separately when the participant qualifies.

Do not include:

• employer match
• employer profit sharing
• voluntary after-tax employee contributions

in the Section 402(g) basic-deferral total.

For someone with more than one employer, this calculation belongs at the person level, because no single payroll system may possess all the numbers.

Sources & References

1. IRS: 401(k) and Profit-Sharing Plan Contribution Limits
2. IRS: Retirement Topics — Contributions
3. IRS Notice 2025-67: 2026 Cost-of-Living Adjustments
4. IRS: What Happens When an Employee Has Excess Elective Deferrals?
5. IRS: 401(k) Fix-It Guide — Elective Deferrals Exceeded Section 402(g)
6. 26 CFR §1.402(g)-1: Limitation on Exclusion for Elective Deferrals
7. 26 U.S.C. §402: Taxability of Beneficiary of Employees' Trust
8. IRS: Retirement Topics — Catch-Up Contributions
9. IRS T.D. 10033: Catch-Up Contributions Final Regulations
10. IRS: 403(b) Plan Fix-It Guide — Elective Deferral Limits
11. IRS: Consequences to a Participant Who Makes Excess Deferrals to a 401(k)
12. IRS: Retirement Topics — 457(b) Contribution Limits

Educational Disclaimer

ROIStreet publishes educational content about retirement-plan contribution limits and administration. This article is not legal, tax, fiduciary or plan-administration advice. Elective-deferral treatment depends on compensation, plan terms, catch-up eligibility, other plans in which the individual participates, employer relationships and current law.

The ROIStreet Reader Promise

We strive to explain before we evaluate, present evidence before opinions, discuss risks alongside potential benefits, distinguish facts from analysis, and correct material errors transparently.

Our purpose is to help readers better understand investing—not to tell them what to do.