Editing 401(k) (section)

===Contribution deferral limits===
{| class="wikitable collapsible" cellpadding="1" cellspacing="1" style="margin:auto; margin:0 0 1em 1em; font-size:90%; float:right;"
|-
! colspan="6" style="background:#ccf; text-align:center;" |Historical 401(k) Contribution Limits<ref name=ContributionLimitHistory>{{cite web |url=https://www.irs.gov/pub/irs-tege/cola-table.pdf |title=Cost-of-Living Adjustments for Retirement Items |publisher=Internal Revenue Service |date=7 November 2023 |access-date=24 January 2024}}</ref>
|-
!align="right"|Year||Employee<br />Elective||Total<br />Employee<br />and<br />Employer<br />(Age < 50)||Catch-Up<br />(Ages 50–59, 64+)
!Catch-Up
(Age 60–63)
!Total<br />Employee,<br />Employer,<br />and<br />Catch-Up<br />(Age 50+)
|-
|align right|1978||?||?||—
|—||?
|-
|align right|1979||?||?||—
|—||?
|-
|align right|1980||?||?||—
|—||?
|-
|align right|1981||?||?||—
|—||?
|-
|align right|1982||?||?||—
|—||?
|-
|align right|1983||?||?||—
|—||?
|-
|align right|1984||?||?||—
|—||?
|-
|align right|1985||?||?||—
|—||?
|-
|align right|1986||?||?||—
|—||?
|-
|align right|1987||?||?||—
|—||?
|-
|align right|1988||?||?||—
|—||?
|-
|align right|1989||$7,627||$30,000||—
|—||$30,000
|-
|align right|1990||$7,979||$30,000||—
|—||$30,000
|-
|align right|1991||$8,475||$30,000||—
|—||$30,000
|-
|align right|1992||$8,728||$30,000||—
|—||$30,000
|-
|align right|1993||$8,994||$30,000||—
|—||$30,000
|-
|align right|1994||$9,240||$30,000||—
|—||$30,000
|-
|align right|1995||$9,240||$30,000||—
|—||$30,000
|-
|align right|1996||$9,500||$30,000||—
|—||$30,000
|-
|align right|1997||$9,500||$30,000||—
|—||$30,000
|-
|align right|1998||$10,000||$30,000||—
|—||$30,000
|-
|align right|1999||$10,000||$30,000||—
|—||$30,000
|-
|align right|2000||$10,500||$30,000||—
|—||$30,000
|-
|align right|2001||$10,500||$35,000||—
|—||$35,000
|-
|align right|2002||$11,000||$40,000||$1,000
|—||$41,000
|-
|align right|2003||$12,000||$40,000||$2,000
|—||$42,000
|-
|align right|2004||$13,000||$41,000||$3,000
|—||$44,000
|-
|align right|2005||$14,000||$42,000||$4,000
|—||$46,000
|-
|align right|2006||$15,000||$44,000||$5,000
|—||$49,000
|-
|align right|2007||$15,500||$45,000||$5,000
|—||$50,000
|-
|align right|2008||$15,500||$46,000||$5,000
|—||$51,000
|-
|align right|2009||$16,500||$49,000||$5,500
|—||$54,500
|-
|align right|2010||$16,500||$49,000||$5,500
|—||$54,500
|-
|align right|2011||$16,500||$49,000||$5,500
|—||$54,500
|-
|align right|2012||$17,000||$50,000||$5,500
|—||$55,500
|-
|align right|2013||$17,500||$51,000||$5,500
|—||$56,500
|-
|align right|2014||$17,500||$52,000||$5,500
|—||$57,500
|-
|align right|2015||$18,000||$53,000||$6,000
|—||$59,000
|-
|align right|2016||$18,000||$53,000||$6,000
|—||$59,000
|-
|align right|2017||$18,000||$54,000||$6,000
|—||$60,000
|-
|align right|2018||$18,500||$55,000||$6,000
|—||$61,000
|-
|align right|2019||$19,000||$56,000||$6,000
|—||$62,000
|-
|align right|2020||$19,500||$57,000||$6,500
|—||$63,500
|-
|align right|2021||$19,500||$58,000||$6,500
|—||$64,500
|-
|align right|2022||$20,500||$61,000||$6,500
|—||$67,500
|-
|align right|2023||$22,500||$66,000||$7,500
|—||$73,500
|-
|align right|2024||$23,000||$69,000||$7,500
|—||$76,500
|-
|2025
|$23,500
|$70,000
|$7,500
|$11,250
|$77,500–$81,250
|}

There is a maximum limit on the total yearly ''employee'' pre-tax or Roth salary deferral into the plan. This limit, known as the "402(g) limit", was $19,000 for 2019, $19,500 for 2020–2021, $20,500 for 2022, $22,500 for 2023, and $23,000 for 2024.<ref name=2019limits>{{cite press release|url=https://www.irs.gov/newsroom/401k-contribution-limit-increases-to-19000-for-2019-ira-limit-increases-to-6000 |title=401(k) contribution limit increases to $19,000 for 2019; IRA limit increases to $6,000 |publisher=Internal Revenue Service |date=1 November 2018}}</ref><ref>{{Cite web|title=401k Plans Deferrals and matching when compensation exceeds the annual limit {{!}} Internal Revenue Service|url=https://www.irs.gov/retirement-plans/401k-plans-deferrals-and-matching-when-compensation-exceeds-the-annual-limit|access-date=20 January 2022|website=www.irs.gov|language=en}}</ref><ref>{{Cite web |last=Keshner |first=Andrew |title=You can save up to $23,000 in your 401(k) next year, IRS says |url=https://www.marketwatch.com/story/you-can-save-up-to-23-000-in-your-401-k-next-year-the-irs-says-43778f8e |access-date=1 November 2023 |website=MarketWatch |language=EN-US}}</ref> For future years, the limit may be indexed for inflation, increasing in increments of $500. Employees who are at least 50 years old at any time during the year are now allowed additional pre-tax "catch up" contributions of up to $6,000 for 2015–2019, and $6,500 for 2020–2021.<ref name="2018limits">"[https://www.irs.gov/pub/irs-drop/n-17-64.pdf Notice 2017-64: 2018 Limitations Adjusted As Provided in Section 415(d), etc.]" ''Internal Revenue Service''. October 19, 2017.</ref><ref name= 2019limits/> The limit for future "catch up" contributions may also be adjusted for inflation in increments of $500. In eligible plans, employees can elect to contribute on a pre-tax basis or as a Roth 401(k) contribution, or a combination of the two, but the total of those two contributions amounts must not exceed the contribution limit in a single calendar year. This limit does not apply to post-tax non-Roth elections.

If the employee contributes more than the maximum pre-tax/Roth limit to 401(k) accounts in a given year, the excess, as well as the deemed earnings for those contributions, must be withdrawn or corrected by April 15 of the following year. This violation most commonly occurs when a person switches employers mid-year and the latest employer does not know to enforce the contribution limits on behalf of their employee. If this violation is noticed too late, the employee will not only be required to pay tax on the excess contribution amount the year was earned, the tax will effectively be doubled as the late corrective distribution is required to be reported again as income along with the earnings on such excess in the year the late correction is made.

Plans which are set up under section 401(k) can also have employer contributions that cannot exceed other regulatory limits. [[Employer matching contribution]]s can be made on behalf of designated Roth contributions, but the employer match must be made on a pre-tax basis.<ref>{{cite web |url=https://www.irs.gov/pub/irs-pdf/p4530.pdf |title=IRS Publication 4530: Designated Roth Accounts under a 401(k) or 403(b) Plan: Frequently Asked Questions (FAQs) |publisher=Internal Revenue Service }}</ref>

Some plans also have a profit-sharing provision where employers make additional contributions to the account and may or may not require matching contributions by the employee. These additional contributions may or may not require a matching employee contribution to earn them.<ref>"[https://www.law.cornell.edu/uscode/text/26/404 26 CFR §404(a)(3)(A)(i)]". via ''Legal Information Institute''. Cornell University Law School.</ref><ref>"[https://www.irs.gov/pub/irs-pdf/p560.pdf Publication 560: Retirement Plans for Small Business (SEP, SIMPLE, and Qualified Plans]". 2016.</ref> As with the matching funds, these contributions are also made on a pre-tax basis.

There is also a maximum 401(k) contribution limit that applies to all employee and employer 401(k) contributions in a calendar year. This limit is the section 415 limit, which is the lesser of 100% of the employee's total pre-tax compensation or $56,000 for 2019, or $57,000 in 2020.<ref name= 2018limits/><ref name=2019limits/> For employees over 50, the catch-up contribution limit is also added to the section 415 limit.

Governmental employers in the United States (that is, federal, state, county, and city governments) are currently barred from offering 401(k) retirement plans unless the retirement plan was established before May 1986. Governmental organizations may set up a section 457(b) retirement plan instead. IRS Raises 2022 401(k) Contribution Limit to $20,500, a $1,000 boost from 2021 contribution limits.<ref>{{Cite web|title=401(k) Contribution Limits for 2022|url=https://www.kiplinger.com/retirement/retirement-plans/401ks/603949/401k-contribution-limits-for-2022|access-date=21 December 2021|website=Kiplinger|date=17 December 2021 |language=en}}</ref>