What is the annual 401(k) employee contribution limit and how does it change each year?

The IRS sets the employee elective-deferral limit for 401(k), 403(b), and most 457(b) plans annually, and it usually rises a few hundred dollars with inflation. Workers age 50 and older can add a separate catch-up amount on top. Because these numbers are adjusted each year, always confirm the current figure at irs.gov rather than relying on a memorized number.

Important: this limit applies only to your own salary deferrals, not your employer's match. The combined total of your contributions plus the employer match plus any after-tax dollars is capped by a separate, much higher overall limit (the Section 415(c) limit). If you contribute to two employers' plans in one year, your personal deferral limit still applies across both plans combined. Use the Retirement Planner at wealthserene.com/tools/retirement-planner to see how maxing out affects your trajectory.