401(k) Contribution Limits: How Much You Can Save Each Year

The annual limit depends on your age and the year

The IRS sets a contribution limit each year — the maximum amount you can put into your 401(k) from your paycheck. For 2024, that limit is $23,500 if you are under 50. If you are 50 or older, you can contribute an additional $7,500 catch-up amount, bringing your total to $31,000.

These limits change most years. The IRS adjusts them based on inflation, usually in $500 increments. Your employer's plan documents will tell you the current limit, and your HR or benefits team can confirm the exact figure for the year you are contributing.

The limit applies to your contributions — the money you choose to have deducted from your paycheck. It does not include employer matching contributions, which are separate and do not count toward your limit.

Key Takeaways

• For 2024, you can contribute up to $23,500 per year if you are under 50, or $31,000 if you are 50 or older.
• The IRS raises these limits most years to keep pace with inflation, so the number changes annually.
• Your employer's matching contributions do not count toward your personal contribution limit.
• If you change jobs mid-year, your limit stays the same across all 401(k) accounts combined — you cannot exceed it by splitting contributions between plans.

How the limit works across multiple jobs

If you work at two different employers in the same year and both offer 401(k) plans, your combined contributions to both accounts cannot exceed the annual limit. This matters because many people do not realize the limit is per person, not per employer.

For example, if you contribute $15,000 to your first employer's plan and then switch jobs mid-year, you can only contribute $8,500 more to your new employer's plan (assuming the 2024 limit of $23,500). You need to track your total across all accounts to stay within the limit.

If you accidentally go over the limit, the IRS charges a penalty tax on the excess amount. Your employer's payroll team or benefits administrator can help you monitor your contributions if you have multiple jobs.

Catch-up contributions if you are 50 or older

Once you turn 50, the IRS allows an extra catch-up contribution of $7,500 per year. This is designed to help people save more as they approach retirement. You do not have to do anything special to use this — you just tell your employer's benefits team that you want to contribute the higher amount.

The catch-up amount is separate from the base limit. So at 50, your total is $31,000 (the $23,500 base plus the $7,500 catch-up). If you have multiple 401(k) accounts, the catch-up limit also applies across all of them combined.

What happens if you exceed the limit

If you contribute more than the annual limit, the excess amount is subject to a 6% excise tax each year it remains in the account. The IRS also taxes the earnings on that excess amount. This penalty stacks up, so it is important to catch and fix the problem quickly.

If you realize you have gone over the limit, contact your employer's benefits or payroll department right away. They can request that the excess be returned to you before the tax important date. The sooner you catch it, the fewer penalties you will owe.

Some plans have automatic safeguards that stop contributions once you hit the limit, but not all do. It is your responsibility to monitor your contributions, especially if you have multiple jobs or receive a large bonus mid-year.

How employer matching does not count toward your limit

Your employer may match a portion of what you contribute — for example, 50 cents for every dollar you put in, up to 6% of your salary. This matching money does not count toward your $23,500 personal limit. Your employer can contribute up to a separate limit (usually around $69,000 combined with your contributions, though this varies by year).

This means you can contribute your full $23,500 and still receive the full employer match without hitting any limit. The match is a bonus on top of your contribution, not part of it.

Roth 401(k) contributions have the same limit

If your employer offers a Roth 401(k) option, contributions to that account count toward the same annual limit as a traditional 401(k). You cannot contribute $23,500 to a traditional 401(k) and another $23,500 to a Roth 401(k) in the same year — your combined total across both account types cannot exceed $23,500 (or $31,000 if you are 50+).

You can split your contributions between the two types however you want, but the total must stay within the limit. For example, you could put $15,000 into a traditional 401(k) and $8,500 into a Roth 401(k) in the same year.

Frequently Asked Questions

Can I contribute more if my employer offers a match?

No. The annual limit applies only to your own contributions. Your employer's matching contributions are separate and do not reduce how much you can contribute from your paycheck. You can still receive the full match even if you hit your personal limit.

What if I get a raise mid-year — does my limit increase?

No. The annual limit is fixed by the IRS and does not change based on your salary or when you receive raises. A higher salary just means you can contribute a larger percentage of each paycheck without hitting the limit sooner.

Do I have to contribute the maximum amount?

No. The limit is the maximum you are allowed to contribute, not the minimum. You can contribute any amount up to that limit, or nothing at all. Many people contribute less based on their budget and financial goals.

What if I turn 50 mid-year — when can I start the catch-up contribution?

You can start making catch-up contributions in the month you turn 50. Contact your benefits team to increase your contribution amount. They will adjust your paycheck deductions starting that month.

Do 401(k) loans count toward my contribution limit?

No. If your plan allows loans, borrowing from your 401(k) does not count toward your annual contribution limit. The limit applies only to money you contribute from your paycheck or as a rollover from another retirement account.