401(k) Contribution Limits: Who Qualifies and What You Get
Learn how much you can contribute to your 401(k) retirement plan each year and what you need to know about employer matching.
A 401(k) allows you to save for retirement by putting money into a specialized account directly from your paycheck.
Who it's for
This is for employees who work at companies that participate in this specific retirement plan.
What you get
You can contribute money toward your retirement using either pre-tax funds or Roth funds. There is a limit to how much you can put in each year, which is currently $23,000.
What it costs you
The main requirement is that your employer must offer a plan to you. Whether or not you can participate depends entirely on your employer's specific benefits.
The catch to know
While many companies offer a 401(k) match—where the employer adds money to your account based on your contributions—this is not a requirement. Some employers may choose not to match your contributions.
How to apply
- Check with your employer to see if they offer a 401(k) plan.
- Contact your human resources department or plan administrator.
- Decide how much of your paycheck you want to contribute.
- Set up your contribution through your company's benefits portal.