For 2026, the IRS 401(k) employee contribution limit is $24,500, up from $23,500 in 2025. Employees age 50 and older can add an $8,000 catch-up for a total of $32,500, and those age 60 to 63 can use a “super catch-up” of $11,250 for a total of $35,750. The combined employee-plus-employer limit rises to $72,000. These figures apply to traditional and Roth 401(k) plans alike.

If you offer a 401(k) or are thinking about it, knowing the current limits matters for both compliance and recruiting. Here’s the full 2026 breakdown straight from the IRS.

2026 401(k) Limits at a Glance

• Employee elective deferral: $24,500
• Catch-up (age 50+): $8,000 — total of $32,500
• Super catch-up (age 60–63): $11,250 — total of $35,750
• Combined employee + employer (Section 415(c)): $72,000 (or $80,000 including the age-50+ catch-up)

All of these reflect the IRS cost-of-living adjustments announced for 2026.

What the Employee Limit Covers

The $24,500 limit applies to elective salary deferrals — the money your employees choose to move from their paycheck into the plan. It applies across traditional (pre-tax) and Roth (after-tax) 401(k) contributions combined; an employee can split between the two, but the total can’t exceed $24,500 (plus any catch-up they’re eligible for).

Catch-Up Contributions: Two Tiers in 2026

• Age 50 and over: an extra $8,000, raising the total to $32,500.
• Age 60, 61, 62, or 63: a higher “super catch-up” of $11,250 (created under SECURE 2.0), raising the total to $35,750.

There’s an important change for 2026: if an employee earned more than $150,000 in FICA wages the prior year, their age-based catch-up contributions must be made as Roth (after-tax) contributions. Employers offering catch-up contributions need their plan to support Roth to stay compliant.

Employer Contributions and the Combined Limit

Employer matching and profit-sharing contributions don’t count against the employee’s $24,500 limit — they fall under the separate combined cap of $72,000 (Section 415(c)). For example, an employee under 50 contributing $24,500 could still receive employer contributions up to the $72,000 total. A generous match is one of the most effective retention tools a small business has, which is why many turn to a PEO to access competitive retirement plans — see our overview of 7 key PEO benefits and the case for outsourcing HR.

If you want to see how retirement benefits, payroll, and compliance fit together for your team, this baseline tool can serve as a starting reference: https://peopaygo.com/get-rate-exchange-blogs/u/step-1.

Related 2026 Limits

• IRA contribution limit: $7,500, with a $1,100 catch-up for age 50+
• SIMPLE 401(k) deferral: $17,000
• Roth 401(k): same limits as traditional 401(k)

Offering a retirement plan also interacts with payroll and tax handling — our payroll tax guide for employers covers how contributions flow through payroll.

Frequently Asked Questions

What is the 401(k) contribution limit for 2026?

The employee elective deferral limit is $24,500. With the age-50+ catch-up of $8,000, eligible employees can contribute up to $32,500; those age 60–63 can contribute up to $35,750.

Does my employer’s match count toward the $24,500 limit?

No. Employer contributions fall under the separate combined limit of $72,000 for 2026, not the employee’s $24,500 deferral limit.

What is the super catch-up contribution?

A higher catch-up of $11,250 for employees age 60 to 63, created under SECURE 2.0. It replaces the standard $8,000 catch-up for that age group when the plan allows it.

Do Roth 401(k) plans have the same limits?

Yes. Roth and traditional 401(k) contributions share the same $24,500 employee limit for 2026. Note that for high earners (over $150,000 in prior-year FICA wages), catch-up contributions must be Roth.

The Bottom Line

For 2026, employees can defer $24,500 into a 401(k), with catch-ups of $8,000 (age 50+) or $11,250 (age 60–63), and a combined employee-plus-employer cap of $72,000. The big compliance change is the Roth catch-up requirement for high earners. If you offer a plan, update your payroll and plan documents to match these limits — and if you don’t yet offer one, a competitive 401(k) is a strong retention lever.

If you want to see how bundling retirement benefits with payroll, workers comp, and HR compliance through a single integrated provider works, this baseline tool can serve as a starting reference: https://peopaygo.com/get-rate-exchange-blogs/u/step-1.

Administering a 401(k) this year? Update your plan’s deferral limits, confirm your catch-up tiers, and make sure your plan supports Roth catch-ups for high earners.

This article is for informational purposes only and does not constitute legal, tax, or financial advice. Retirement plan limits are set by the IRS and adjusted annually. Confirm current figures with the IRS or a qualified plan advisor.

A Business Owner’s Policy (BOP) bundles general liability and commercial property insurance — and usually business interruption coverage — into one package, typically costing small businesses about $57 to $150 per month. The key difference from standalone general liability: a BOP adds property protection and lost-income coverage, while general liability alone covers only third-party bodily injury and property damage claims. A BOP is built for small to mid-size, lower-risk businesses that want broader protection at a bundled price.

This guide explains exactly what a BOP covers and how it compares to general liability. For a plain-language definition of the term itself, see our companion guide on BOP insurance meaning in simple terms.

What a BOP Covers

A standard BOP combines three core coverages:

• General liability — third-party bodily injury, property damage, and related legal costs.
• Commercial property — your building, equipment, inventory, and furnishings against covered events like fire or theft.
• Business interruption — lost income and operating expenses if a covered event forces you to pause operations.

Many insurers let you add endorsements — like data breach or equipment breakdown coverage — to tailor the policy.

What a BOP Does NOT Cover

A BOP is broad but not all-encompassing. These are typically separate policies:

• Workers compensation — required separately in nearly every state once you have employees.
• Professional liability (E&O) — for mistakes in professional advice or services. See what errors and omissions insurance is.
• Commercial auto — for business vehicles.
• Health and other employee benefits.

BOP vs. General Liability: The Key Difference

This is the comparison most owners care about:

• General liability (GL) — covers only third-party bodily injury and property damage claims. It does not protect your own property or income. GL alone runs about $40 to $100 per month for many small businesses.
• BOP — includes that same general liability, plus your commercial property and business interruption coverage, in one bundled policy for roughly $57 to $150 per month.

In short: if you only need liability protection, GL may be enough. If you also want to protect your equipment, inventory, or space — and your income if you’re forced to close temporarily — a BOP usually delivers more coverage for a modest additional cost.

Who Should Consider a BOP?

A BOP is designed for small to mid-size, lower-risk businesses — retailers, offices, service shops, and similar operations. Larger or higher-hazard businesses may not qualify for a packaged BOP and might need separate, customized policies instead.

If you want to see how your business insurance, workers comp, and payroll fit together, this baseline tool can serve as a starting reference: https://peopaygo.com/get-rate-exchange-blogs/u/step-1.

How to Decide Between a BOP and Standalone Policies

• List the assets you need to protect — property, inventory, equipment, income
• If liability is your only exposure, compare standalone GL
• If you have property and income to protect, price a BOP
• Confirm what’s excluded (workers comp, E&O, auto) and budget for those separately
• Remember many contracts require proof of coverage — see how to get a certificate of insurance

Frequently Asked Questions

What does a BOP cover?

A Business Owner’s Policy bundles general liability, commercial property, and usually business interruption coverage. Endorsements can add protections like data breach or equipment breakdown.

What’s the difference between a BOP and general liability?

General liability covers only third-party bodily injury and property damage. A BOP includes general liability plus your own property and business interruption coverage in one package.

Does a BOP include workers comp?

No. Workers compensation is a separate policy, required in nearly every state once you have employees. A BOP also excludes professional liability and commercial auto.

How much does a BOP cost?

Many small businesses pay about $57 to $150 per month, depending on industry, location, property value, and coverage limits.

The Bottom Line

A BOP gives small, lower-risk businesses general liability plus property and business interruption coverage in one bundle — usually $57 to $150 a month. Compared to standalone general liability, it protects your own assets and income, not just third-party claims. Just remember it excludes workers comp, E&O, and auto, which you’ll need to cover separately.

If you want to see how bundling business insurance, workers comp, and payroll through a single integrated provider can simplify your coverage, this baseline tool can serve as a starting reference: https://peopaygo.com/get-rate-exchange-blogs/u/step-1.

Deciding between a BOP and standalone policies? List the assets and income you need to protect, then compare a bundled BOP against general liability plus separate coverage.

This article is for informational purposes only and does not constitute legal or insurance advice. BOP coverage, eligibility, and costs vary by carrier, industry, and state and change frequently. Consult a qualified insurance broker for guidance specific to your business.