This maximum 401K contribution article has been revised for the 2024 tax (calendar) years and contains historical data for prior years. The IRS recently announced the 2024 maximum 401K contribution limit for employees at $23,000 – an increase from 2023’s record breaking increase of $2,000! Read on for additional details including catch-up contributions, employer maximum contributions, historical limits and more!
The IRS adjusts maximum retirement account contribution limits according to changes in the consumer price index (CPI), and as it has seen significant increases over time – hence this change from 2023-2024.
The IRS establishes an annual maximum 401K contribution limit which applies to tax-advantaged employee contributions to both traditional 401Ks and Roth 401Ks (shared between both types, if you have both). It forms part of your maximum employer 401K contribution (employer plans may have their own higher limit, which includes employer and employee contributions), or it applies as the “employee” contribution portion of Solo 401Ks with self-employment income. Below we detail both prior 2023 maximum 401K contribution limits as well as those which apply in 2024 – we’ll also detail any details between prior maximum 401K contribution limits and their new 2024 limits so you know what to expect!
+ There are no comments
Add yours