2024 401(k) Contribution Limits and How They Work

The 2024 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 your employer will withhold from your paycheck and deposit into your account. The limit applies per person, per employer — if you work two jobs with two separate 401(k) plans, you can contribute $23,500 to each one, but your total across all plans cannot exceed $23,500 for the year.

This limit is set by the IRS and changes most years. The 2024 limit is $1,000 higher than the 2023 limit of $22,500. Your employer may also match part of what you contribute, and that employer match does not count toward your $23,500 limit — it is separate money.

If you are 50 or older, you can contribute an additional $7,500 as a catch-up contribution, bringing your total to $31,000 for 2024. You must be 50 by December 31 of the year you make the contribution.

Key Takeaways

• The 2024 limit for workers under 50 is $23,500 per year, and workers 50 and older can contribute $31,000 total.
• Your employer's matching contribution does not count toward your personal limit, so you can receive additional money beyond $23,500.
• The limit applies to your combined contributions across all 401(k) plans you may have, not per plan.
• If you contribute more than the limit, your employer must return the excess to you, usually by April 15 of the following year.

How the contribution limit works with employer matching

Your employer match is money your employer adds to your account based on how much you contribute. If your employer matches 50% of your contributions up to 6% of your salary, that match is not part of your $23,500 limit. The total of your contribution plus your employer's match cannot exceed $69,000 for 2024 (or $76,500 if you are 50 or older), but that higher number is rarely reached by individual workers.

For example, if you earn $80,000 and contribute $23,500, and your employer matches 50% of your contributions up to 6% of salary, your employer would contribute $2,400 (50% of $4,800, which is 6% of $80,000). Your total account deposit for the year would be $25,900, but only your $23,500 counts toward the individual limit.

What happens if you contribute too much

If you exceed the $23,500 limit (or $31,000 if you are 50 or older), your employer's payroll system should catch it and stop withholding once you reach the cap. However, if you work for multiple employers or switch jobs during the year, you could accidentally go over the limit across all your plans combined.

If this happens, you must report the excess to the IRS on your tax return. The excess amount is taxed twice — once when you contributed it and again when you withdraw it — unless you correct it before your tax filing important date. The easiest way to avoid this is to track your total contributions across all employers and adjust your withholding if you change jobs mid-year.

Catch-up contributions for workers 50 and older

If you turn 50 at any point during the calendar year, you become may be able to access to contribute an extra $7,500 on top of the standard $23,500 limit. This catch-up contribution is designed to help workers save more in the years before retirement. You do not need to do anything special to claim it — you straightforward tell your employer's payroll department that you want to increase your contribution to $31,000 for the year.

The catch-up contribution is available only in 401(k), 403(b), and certain other employer plans. It is not available in traditional or Roth IRAs, which have their own separate contribution limits.

How limits differ from other retirement accounts

A 401(k) limit is separate from the limits on IRAs. In 2024, you can contribute up to $7,000 to a traditional or Roth IRA (or $8,000 if you are 50 or older), and this is in addition to your 401(k) contributions. You could contribute the full $23,500 to your 401(k) and also contribute $7,000 to an IRA in the same year without hitting any limit.

If you have a 403(b) plan through a school or nonprofit employer, or a 457 plan through a government employer, those plans have the same $23,500 limit as a 401(k). However, if you participate in both a 401(k) and a 403(b), your combined contributions to both cannot exceed $23,500.

When the limit applies and how to track it

The contribution limit is based on the calendar year, January 1 through December 31. Your employer withholds money from each paycheck throughout the year, and the total of all those withholdings cannot exceed $23,500 (or $31,000 with catch-up). Most payroll systems track this automatically and stop withholding once you reach the limit.

You can check your year-to-date contributions by logging into your 401(k) plan's website or calling the plan administrator. Your employer should also provide a statement showing how much you have contributed so far. If you change jobs, the new employer's plan will not know about contributions you made at your previous job, so you need to track the total yourself or contact both plan administrators.

Frequently Asked Questions

Can I contribute more than $23,500 if my employer offers a match?

No. The $23,500 limit is only for your own contributions. Your employer's match is separate and does not count toward your limit. However, the combined total of your contribution and your employer's match cannot exceed $69,000 for 2024.

What if I change jobs mid-year?

Your contributions at each job count toward the same annual limit. If you contributed $12,000 at your first job and then move to a new job, you can only contribute $11,500 more at the new job to stay within the $23,500 limit. You must track this yourself or contact both plan administrators to confirm your total.

Do Roth 401(k) contributions count toward the same limit?

Yes. If your employer offers both a traditional 401(k) and a Roth 401(k), your combined contributions to both plans cannot exceed $23,500. You choose how to split the money between the two, but the total is capped at $23,500.

Will the limit change in 2025?

The IRS adjusts the limit most years based on inflation. The 2025 limit has not been announced yet, but it will likely be higher than $23,500. You can check the IRS website in October or November 2024 for the official 2025 limit.

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

Yes. The $23,500 401(k) limit and the $7,000 IRA limit are separate. You can contribute the maximum to both in the same year. However, if you have a high income and a workplace retirement plan, your ability to deduct traditional IRA contributions may be limited.