Below is an update on the maximum 401k contribution amounts for tax year 2025 and 2026:
For Tax Year 2025, the 401K maximum contributions are as follows:
Under 50 years old: $23,500
Ages 50-59 years old: $23,500 plus $7,500 catch-up contribution
Ages 60-63 years old: $23,500 plus $11,250 catch-up contribution
Ages 64 and older: $23,500 plus $7,500 catch-up contribution
For Tax Year 2026, the 401K maximum contributions are as follows:
Under 50 years old: $24,500
Ages 50-59 years old: $24,500 plus $8,000 catch-up contribution
Ages 60-63 years old: $24,500 plus $11,250 catch-up contribution
Ages 64 and older: $24,500 plus $8,000 catch-up contribution
These contributions are deductible for NJ purposes as well. The 401k plan is one of the only retirement plans that allows a deduction for NJ purposes.