401k Contribution Limits for 2024
Learn how much you can contribute to your 401(k) retirement account this year.
Annual Retirement Plan Contribution Limits
Retirement plan contribution limits are adjusted every year to keep up with inflation and to help individuals save enough money for retirement. The IRS adjusts the limits annually and many people are surprised to learn that they could be saving more.
Many folks are automatically enrolled into their company's 401k plan at a rate of 6-8%. And while that number has been on the rise over the years, it is suggested that 10-15% should be your savings goal.
The chart below shows the upper limits of how much you can save annually. The question is: if you prioritized retirement savings, could you save more?
Compensation | $345,000 | $330,000 |
Taxable Wage Base | $168,600 | $160,200 |
Highly Compensated Employee (HCE) | $155,000 | $150,000 |
Key Employee/Officer | $220,000 | $215,000 |
Total Contribution Limit (Employee & Employer) | $69,000 | $66,000 |
Maximum Contributions (401k/403b/457) | $23,000 | $22,500 |
Maximum Catch-Up – Age 50+ (401k/403b/457) | $7,500 | $7,500 |
Defined Benefit Limit | $275,000 | $265,000 |
SIMPLE | $16,000 | $15,500 |
SIMPLE Catch-Up – Age 50+ | $3,500 | $3,500 |
IRA Contribution Limit | $7,000 | $6,500 |
IRA Catch-Up – Age 50+ | $1,000 | $1,000 |
2024
2023
Company Retirement Plan Contribution Limits
Company-sponsored retirement plans such as 401k, 403b, and 457 plans are popular ways to save for retirement. However, as tax-advantaged accounts, the IRS limits how much you can contribute each year.
Maximum Contributions (Employee)
One thing to point out is that the annual limit is based on age. Because many Americans are undersaved, there are many programs in place to help boost saving at age 50.
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Under age 50, the contribution limit for 2023 has been increased to $22,500, up from $20,500 in 2022.
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50 and older are eligible to make an additional "catch-up" contribution of $7,500 in 2023, for a total of $30,000.
Total Contribution Limit (Employee & Employer)
For companies that offer an employer match, there is also a limit to how much can be saved.
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You and your employer can contribute up to $66,000 or 100% of your compensation in 2023, whichever is less (an increase from $61,000 in 2022).
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With the catch-up contribution, people age50 and older can contribute a total of $73,500 in 2023, up from $67,500 in 2022.
At 401k Extra, we specialize in retirement plans so people can retire on their terms. Explore how we help plan sponsors manage retirement plans or how we create personalized financial plans for individuals.
*This information is provided as a courtesy and is not designed to be all-encompassing. This information was developed as a general guide to educate and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements and you should consult your attorney or tax advisor for guidance on your specific situation.