401(k) Contribution Limits for 2024

The 2024 contribution limits

For 2024, you can contribute up to $23,500 of your own money to a traditional or Roth 401(k). If you are 50 or older, you can add an extra $7,500 as a catch-up contribution, bringing your total to $31,000. These are the maximum amounts your employer's plan will accept from your paycheck.

Your employer can also contribute to your account on top of what you put in. Employer contributions do not count against your personal limit, but the combined total of your contributions plus employer contributions cannot exceed $69,000 for 2024 (or $76,500 if you are 50 or older). Most people never hit that combined ceiling because employer matches are typically much smaller.

These limits change each year. The IRS adjusts them for inflation, usually in $500 increments. If you are planning ahead, check your plan documents or your employer's benefits website in January of each year to see if the limit has moved.

Key Takeaways

• You can contribute up to $23,500 of your own money to a 401(k) in 2024, or $31,000 if you are 50 or older.
• Your employer's contributions do not count toward your personal limit, but all contributions combined cannot exceed $69,000 per year.
• Contribution limits increase each year with inflation, so the amount you can set aside will likely be different in 2025.
• If you contribute more than the limit allows, your employer must return the excess to you, usually with taxes owed on the overage.

How contributions are counted

Only money that comes directly from your paycheck counts toward your $23,500 limit. This includes your regular salary deferrals and any catch-up contributions if you are 50 or older. Employer matches, profit-sharing contributions, and any other money your employer puts in do not reduce your personal limit.

If you have more than one 401(k) — for example, if you changed jobs and have an old plan still open — your contributions across all plans are added together. You cannot contribute $23,500 to each plan; the total across all of them must stay under $23,500. This is why it matters to track where your money is going if you have worked for multiple employers in the same year.

What happens if you contribute too much

If you accidentally put more than $23,500 into your 401(k) in a single year, your employer must identify the overage and return it to you. This is called a corrective distribution. The returned amount is taxed as ordinary income in the year you contributed it, and you may owe a 10% early withdrawal penalty on top of that if you are under 59½.

To avoid this, most employers have payroll systems that stop accepting contributions once you hit the limit. If you change jobs mid-year, however, you might accidentally exceed the limit because each employer counts contributions separately until the year ends. If this happens, contact your new employer's benefits department and ask them to stop contributions for the rest of the year, or ask your old employer to return the excess.

Catch-up contributions if you are 50 or older

The extra $7,500 catch-up contribution is available only to people who are 50 or older by December 31 of the year you are contributing. You do not need to do anything special to use it — once you turn 50, your plan should automatically allow you to increase your contributions. Check with your benefits administrator to confirm the new limit is in effect.

Some employers also offer a special catch-up provision for people within three years of their plan's normal retirement age, which can allow even larger contributions. This is less common and depends entirely on whether your specific plan offers it. Ask your benefits department whether your plan has this option.

Contribution limits across different account types

If you have both a traditional 401(k) and a Roth 401(k) through the same employer, your contributions to both plans are combined and must stay under $23,500 total. You cannot contribute $23,500 to each. The same rule applies if you have a 401(k) and a 403(b) plan (common in schools and nonprofits) — they share the same limit.

A Roth IRA or traditional IRA has its own separate limit of $7,000 for 2024 ($8,000 if you are 50 or older), so you can max out both an IRA and a 401(k) in the same year without any conflict. However, your ability to contribute to a Roth IRA phases out if your income is above a certain threshold, so check the income limits if you earn a high salary.

Planning your contributions throughout the year

To avoid overshooting the limit, divide $23,500 by the number of paychecks you receive in a year. If you are paid biweekly (26 paychecks), that is roughly $904 per paycheck. If you are paid twice a month (24 paychecks), that is roughly $979 per paycheck. Most payroll systems let you set a dollar amount or a percentage of your salary, so you can adjust either one to stay on track.

If you receive a bonus or a large one-time payment, factor that into your calculation. Some people increase their contribution percentage early in the year and then lower it later to avoid hitting the limit too early. Others set a fixed dollar amount and let payroll handle the math. Either approach works as long as you monitor your balance through your plan's website or app.

Frequently Asked Questions

Can I contribute more than $23,500 if my employer matches?

No. Your personal contributions are capped at $23,500. Your employer's match does not count toward that limit, but the combined total of everything going into your account cannot exceed $69,000 in 2024. In practice, employer matches are usually small enough that this combined limit is not a concern.

What if I change jobs mid-year?

Your contributions across all employers in the same year are combined and must stay under $23,500 total. If you contributed $15,000 at your first job and then $12,000 at your second job, you have hit the limit. Contact your new employer to stop contributions for the rest of the year, or ask your old employer to return the excess.

Do I have to contribute the maximum amount?

No. You can contribute any amount up to the limit. Many people contribute less because they cannot afford the maximum, and that is perfectly fine. Your employer's match (if offered) is separate from your personal limit, so you will still receive it even if you do not max out.

Will the limit change in 2025?

Probably. The IRS adjusts contribution limits each year based on inflation. The 2025 limit has not been announced yet, but it will be published by the IRS in late 2024. Check your employer's benefits website or the IRS website in January 2025 to see the new amount.

Can I contribute to a 401(k) and an IRA in the same year?

Yes. A 401(k) limit and an IRA limit are separate. You can contribute up to $23,500 to a 401(k) and up to $7,000 to a traditional or Roth IRA in 2024. However, if you earn above a certain income threshold, you may not be able to deduct traditional IRA contributions or contribute to a Roth IRA, so check the income limits.