Have you checked how much of your pay you can put into your 401(k) in 2026? The IRS increased the annual 401(k) contribution limit to $24,500, giving workers an additional $1,000 of contribution room compared with 2025.
The IRS confirmed the change in Notice 2025-67. If you are 50 or older, your regular catch-up contribution can reach $8,000. Meanwhile, members ages 60 to 63 may use the higher $11,250 limit if their plan allows it.
Union pay does not always arrive in equal checks. Hours may rise, overtime may start, or a job may slow down. That makes it important to understand the 2026 401(k) contribution limits and how changes in income can affect your retirement contributions. ULA Network breaks it down for union members.
These 401(k) limits in 2026 apply to most 401(k), 403(b), governmental 457 plans, and the Thrift Savings Plan.
|
Limit |
2025 |
2026 |
|
Employee deferral limit |
$23,500 |
$24,500 |
|
Catch-up limit age 50 and over |
$7,500 |
$8,000 |
|
Higher catch-up ages 60 to 63 |
$11,250 |
$11,250 |
|
Annual additions limit |
$70,000 |
$72,000 |
Your elective deferral comes from your own pay. By contrast, total annual additions can include that money, employer contributions, and other plan funds. The IRS caps the total at $72,000 or 100% of your pay, whichever is less.
Catch-up money sits above the annual additions limit. Therefore, a member may reach $80,000 with the regular catch-up or $83,250 with the super catch-up. Your plan may set a lower cap, so check before changing payroll.
Most guides show 26 equal checks, but union work rarely stays that neat. A busy spring may carry a slow winter. As a result, the deferral percentage that looked right in January may leave unused room in December.
Keep these points in view:
First, enter your current balance and work years in our retirement income projection calculator. Next, use our budgeting calculator to see whether a higher deduction still leaves enough for weekly bills.
Suppose a member works 1,900 hours and receives $14 per hour in annuity fund contributions. The fund puts in $26,600. If the same plan also gets a $24,500 employee deferral, the total is $51,100. It stays below $72,000.
However, not every annuity fund follows the same rules. Members who work many hours should ask the fund office which deposits count as annual additions.
The Roth catch-up rule changes how some catch-up money gets taxed. For 2026, the indexed wage threshold is $150,000 of 2025 FICA wages from the employer that runs the plan. If those wages went above $150,000, your 2026 catch-up must usually go into a Roth account.
Roth deposits are after tax contributions. However, they may provide tax free growth. Qualified withdrawals can also be tax free.
The IRS says the SECURE 2.0 final regulations generally apply in 2027. Still, the Roth rule starts in 2026. Plans may use a good-faith reading of the law that year. A plan under a collective bargaining agreement may get a later start under the final rules. Therefore, check with your fund office before assuming the delay covers your plan.
A 1% step can feel easier than one large change, especially when weekly hours move up and down.
If a higher deduction makes the next slow month look tight, use our income gap and emergency expense calculators.
A union pension may work as a defined benefit pension. Its formula sets the benefit. Meanwhile, an annuity account grows through funds tied to your work hours. Your union 401(k), however, gives you control through payroll deductions.
These accounts can support the same retirement, but they do not share one rule. Annuity fund contributions may count within a defined contribution plan's limit. Pension funding follows other rules. Read your summary plan document and collective bargaining agreement. Then ask the fund office how employer contributions enter your account.
For the next step, read understanding your union pension before you retire.
Our guide to unlocking retirement benefits for union members also covers forms that members can easily miss.
Labor-owned Ullico offers insurance, investment, and risk management solutions for unions, members, and benefit trust funds. You can find every group behind our work on the supporters page.
For more information on retirement planning, benefits, and financial resources, explore ULA Network's financial education playlist. Our goal is simple: give union families clear information before an important payroll or retirement deadline passes.
The extra $1,000 of room matters only if it fits your pay and household needs. Start with your latest pay stub. Note the current amount and compare it with the 2026 limits. Then, if a gap remains, decide whether several small steps fit your budget.
Our financial education resources support budgeting and retirement planning for union families. If you need help finding the right plan, Contact us, and we will point you toward the right resource.
1. How much can I contribute to my 401(k) in 2026?
Most workers can defer $24,500. If you are at least 50 by year-end, the total may reach $32,500. Members ages 60 to 63 may reach $35,750 if the plan offers that higher catch-up.
2. What is the total limit including employer contributions?
The cap is the lower of $72,000 or 100% of your pay. Catch-up money can raise the amount to $80,000 or $83,250, based on age and plan rules.
3. Do the 401k contribution limits 2026 apply to my annuity fund too?
The $24,500 limit applies to your employee deferral, not every fund deposit. Because plan rules differ, your fund office must confirm whether annuity money counts toward the $72,000 limit.
4. Can I fund an IRA as well as my 401(k)?
Yes. The IRA contribution limit rises to $7,500 for 2026, while the IRA catch-up for people 50 and older is $1,100. However, income and workplace coverage can affect a traditional IRA deduction.
5. When should I change my deferral for 2026?
Make the change as early as your budget allows. That spreads the extra money across more pay periods and avoids a large year-end deduction.