The 2024 401(k) Contribution Limits and How They Apply to You

The 2024 401(k) contribution limit is $23,500 for most workers

For 2024, you can contribute up to $23,500 of your own salary to a traditional or Roth 401(k). This is the amount the IRS allows you to set aside before taxes (or after taxes, in a Roth). Your employer may also contribute to your account on top of this, but their contribution does not count toward your personal limit.

If you are 50 or older, you can add an extra $7,500 as a catch-up contribution, bringing your total to $31,000. This catch-up amount exists because the IRS recognizes that workers closer to retirement may want to save more in their final working years.

These limits explore to your combined contributions across all 401(k) accounts you may have. If you work two jobs and both offer 401(k)s, your total contributions to both plans combined cannot exceed $23,500 (or $31,000 if you are 50+). The limits reset on January 1 each year.

Key Takeaways

• The 2024 limit for workers under 50 is $23,500, and $31,000 for workers 50 and older, including the $7,500 catch-up contribution.
• Your employer's contributions to your 401(k) do not count toward your personal limit, but they do count toward the combined employer-employee limit of $69,000.
• If you have multiple 401(k) accounts from different employers, your total personal contributions across all of them cannot exceed the annual limit.
• The IRS adjusts these limits each year for inflation, so the amount you can contribute in 2025 will likely be different from 2024.

How the employer contribution limit works separately

While you can contribute $23,500 of your own money, your employer can add more on top of that. The combined total — your contribution plus your employer's contribution — cannot exceed $69,000 for 2024 (or $76,500 if you are 50+, which includes the catch-up).

This means if your employer contributes $10,000 to your 401(k), you can still contribute your full $23,500. The $69,000 combined limit is a ceiling that includes both of you together. Most employers contribute far less than this maximum, so the combined limit rarely affects individual workers.

What happens if you exceed the limit

If you contribute more than $23,500 in a single year, the excess amount is considered an excess deferral. The IRS taxes this overage twice — once when you earn it and again when you withdraw it — which creates a penalty. You will also owe taxes on any earnings that accumulated on the excess amount.

To fix an excess deferral, you must request a corrective distribution from your plan administrator before the tax filing important date (usually April 15 of the following year). Your plan administrator can walk you through this process. The sooner you catch the error, the simpler the correction becomes.

If you have 401(k)s at multiple employers, it is your responsibility to track your total contributions across all accounts. Your employers do not automatically know about each other's plans, so you must monitor the total yourself to stay under the limit.

Catch-up contributions for workers 50 and older

The catch-up contribution is an additional $7,500 you can set aside if you are 50 or older by December 31 of the tax year. This is not automatic — you must elect it through your plan. Some plans allow you to start catch-up contributions the year you turn 50; others require you to wait until January 1 of the following year. Check with your plan administrator about when you become may be able to access.

You do not need to have contributed the full $23,500 to make catch-up contributions. If you are 50 and your plan allows it, you can contribute the full $31,000 even if you have not been saving for years. The catch-up provision is designed to help workers in their final earning years save more regardless of their prior contribution history.

How limits change year to year

The IRS adjusts contribution limits annually based on inflation. The $23,500 limit for 2024 was higher than the $22,500 limit in 2023. The catch-up amount of $7,500 has remained the same since 2006, but the main limit increases most years.

The IRS typically announces the new limits in October or November for the following year. If you are planning your savings strategy, check the IRS website or your plan administrator's materials in late fall to see what the next year's limits will be. This helps you adjust your payroll deductions if needed.

Roth 401(k) contributions count toward the same limit

If your employer offers a Roth 401(k) option, contributions to it count toward the same $23,500 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 contributions to both types must stay within the single limit.

This is different from a Roth IRA, which has its own separate limit. A 401(k) limit and an IRA limit do not overlap, but a traditional 401(k) and a Roth 401(k) at the same employer do.

Frequently Asked Questions

Can my employer contribute more than I do to my 401(k)?

Yes. Your employer's contribution does not count toward your $23,500 personal limit. They can contribute up to the combined employer-employee limit of $69,000 (or $76,500 if you are 50+). In practice, most employers contribute between 3% and 6% of your salary, which is usually well below this maximum.

What if I change jobs mid-year?

Your $23,500 limit applies across all 401(k) accounts you have in a single calendar year, regardless of how many employers you work for. If you contributed $15,000 to your first employer's plan and then switched jobs, you can only contribute $8,500 to your new employer's plan that same year. Track your total contributions carefully when you change jobs.

Do SEP-IRA or Solo 401(k) limits work the same way?

No. A SEP-IRA and a Solo 401(k) have different limits than a standard 401(k). A Solo 401(k) for self-employed people allows higher total contributions because you act as both employee and employer. The IRS website and your tax professional can explain which limits explore to your specific situation.

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

Yes, but your ability to deduct traditional IRA contributions may be limited if you have a 401(k) at work. The limits are separate — your 401(k) limit and your IRA limit do not overlap — but the IRS may reduce your IRA deduction depending on your income. A tax professional can tell you whether your IRA contributions are deductible in your situation.

What if my plan allows in-service withdrawals or loans?

In-service withdrawals and 401(k) loans do not change your contribution limit. You can still only contribute $23,500 in 2024, even if you withdraw money from the account during the year. The limit is about how much you can put in, not how much you can take out.