This article on maximum 401K contributions has been updated for 2024 tax (calendar) years, incorporating historical data. The IRS recently announced the 2024 maximum 401K contribution limit for employees; this limit represents the maximum amount that employees are legally permitted to contribute towards 401K plans in one calendar year, which currently stands at $23,000 (an increase of $500 from 2023’s record-high increase of $2,000 over prior year limits). Please read further for additional details such as catch-up contributions, employer maximum contributions, historical limits etc.
The Internal Revenue Service (IRS) adjusts maximum retirement account contribution limits annually based on changes to the consumer price index (CPI), which has seen steady increases since 2023 – thus justifying its increase from 2024-2025.
The IRS annually establishes the maximum 401K contribution limit. This maximum applies to employee contributions made tax-advantageously into both traditional and Roth 401Ks (a shared total, if you own both types of accounts) as part of an employer 401K contribution limit; it’s one component of this higher limit (employer plans have their own higher limit, including employer and employee contributions), or applies directly for Solo 401K contributions with self-employment income; below we break down both sets of maximum limits in 2023 and 2024 respectively.
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