Over-contributed to your 401(k)? The two-jobs trap

The 2026 limit is per person — not per plan

For 2026 you can contribute up to $24,500 of your own money to 401(k)/403(b) plans (plus an $8,000 catch-up at 50+, or $11,250 at ages 60–63). That cap applies to you, across every plan you're in. But a plan can only see what it receives — so if you defer $18,000 at Job A and $14,000 at Job B, both plans think you're fine while you're actually $7,500 over.

Why it's so easy to miss

It usually happens when you change jobs mid-year and keep contributing at the same percentage, or work two jobs at once. Nobody is aggregating the two plans for you — not the employers, not the payroll systems. The IRS puts the responsibility to catch it squarely on the employee.

The fix: a corrective distribution by April 15

If you catch an excess, contact one of the plans and request a corrective distribution of the excess amount plus its earnings. The deadline is April 15 of the year after the contribution — and a tax-filing extension does not push it back. Correct it in time and only the excess is taxed for the contribution year (the earnings are taxed in the year they're paid out), and you avoid the double tax and the early-withdrawal penalty.

What doesn't count toward the limit

Only your own elective deferrals count toward the $24,500. Your employer's match doesn't — it counts toward a separate, much larger $72,000 total-additions limit. So a generous match can never create an excess deferral; only your own contributions can.

One 2026 change to know: Roth catch-up for high earners

Separately from the excess-deferral rules, a SECURE 2.0 provision means that from 2026, catch-up contributions by higher earners (over $150,000 in prior-year wages from that employer) may have to be made as Roth (after-tax) rather than pre-tax. It changes the tax character of the catch-up, not the dollar limits above — but it's worth knowing if you're 50+ and well-paid.