2024 401(k) Contribution Limit
For 2024, the 401(k) Contribution Limit figures are $23,000 (Elective deferral) and +$7,500 (Age 50 catch-up).
Effective 2024-01-01Source: Notice 2023-75 (IRS)Verified 2026-09-03
Compared with 2023
| Item | 2023 | 2024 | Change |
|---|---|---|---|
| Elective deferral | $22,500 | $23,000 | +$500 (+2.2%) |
| Age 50 catch-up | +$7,500 | +$7,500 | +$0 (+0.0%) |
Who it applies to
Employees who participate in an applicable employer plan under Section 401(k) of the Internal Revenue Code, and individuals aged 50 or older who make catch-up contributions to such a plan.
What changed this year, and why
For 2024, the IRS increased the elective deferral limit under Section 401(k) of the Internal Revenue Code to $23,000, effective January 1, 2024. The catch-up contribution limit for participants aged 50 or older remains $7,500.
Common questions
- What is the elective deferral limit for 2024?
- The elective deferral limit is $23,000 for 2024, effective January 1, 2024.
- How much can someone aged 50 or older contribute extra in 2024?
- Participants aged 50 or older may make an additional catch-up contribution of $7,500 in 2024.
Every amount on this page is a published figure rather than yours. The 401(k) contribution planner takes the number you enter and works it out against them, showing which published figure it used.
What the limit counts, and the tax it does not save
An elective deferral is the portion of your compensation that you choose to have your employer contribute to a retirement plan instead of paying to you directly. For 2024, the overall limit on these deferrals across 401(k), 403(b), TSP, and SARSEP plans is $23,000. Because the money is sent to the plan before your employer calculates your income tax, the deferral is not included in the wages subject to federal income tax at the time it is contributed. However, the amount is still subject to Social Security and Medicare taxes, so the deferral does not reduce those payroll taxes. You may be covered by several of the plans listed by the IRS, but the $23,000 cap applies to the total you defer across all of them, not to each plan separately. Your employer or plan administrator will apply the proper annual limit, but you are responsible for monitoring the total you defer during the year to make sure it does not exceed the overall limit.
An elective deferral, other than a designated Roth contribution (discussed later), isn't included in wages subject to income tax at the time contributed. However, it’s inclu- ded in wages subject to social security and Medicare taxes.
Publication 525 (2024), Taxable and Nontaxable Income (IRS)
One limit across every plan you defer into
The overall limit on deferrals for 2024 is $23,000 of contributions to the covered retirement plans. This limit applies to the total amount you defer across all plans you participate in, not separately to each plan. If you have multiple plans, the amounts you defer to each one are added together, and the combined total cannot exceed $23,000 unless you qualify for catch-up contributions. Your employer or plan administrator should apply the proper annual limit when figuring your plan contributions, but you are responsible for monitoring the total you defer to ensure that the deferrals are not more than the overall limit. Amounts deferred under specific plan limits are part of the overall limit on deferrals, so deferrals to any covered plan count toward the same $23,000 cap.
Overall limit on deferrals. For 2024, you shouldn't have deferred more than a total of $23,000 of contributions to the plans listed in (1) through (3), earlier, unless you are 50 or older. The specific plan limits for the plans listed in (4) through (7), earlier, are discussed later. Amounts deferred under specific plan limits are part of the overall limit on deferrals.
Publication 525 (2024), Taxable and Nontaxable Income (IRS)
The catch-up once you are old enough for it
Two conditions, and the age is the one people know: you may make catch-up contributions if you are age 50 or older by the end of your tax year, so a birthday in December still counts for the whole year. The amount for 2024 is $7,500 for a 401(k) plan, and it is an additional elective deferral - it sits on top of the $23,000 limit rather than inside it, which is why someone eligible for both can defer the two added together. The same figure covers 403(b) plans, the Thrift Savings Plan, SARSEPs and governmental 457 plans, so changing employer between those does not reset it. What the passage does not do is oblige your plan to offer catch-up contributions at all. Whether the option exists for you is a question about your plan document, and the administrator is the one who answers it.
You may be allowed catch-up contributions (additional elective de- ferrals) if you're age 50 or older by the end of your tax year. For 2024, the catch-up limit for section 401(k) and 403(b) plans, the TSP, SAR- SEP plans, and governmental section 457 plans is $7,500.
Publication 525 (2024), Taxable and Nontaxable Income (IRS)
What happens if you defer more than the limit
Nothing corrects this for you. A plan sees only what went into itself, so two employers' plans can each stay inside the limit while you, the person the limit actually belongs to, are over it; and even a single plan waits to be told. The correction starts with you telling the plan there is an excess, by whatever date that plan's own rules set, which means the first thing to find out is what that date is - it is set by the plan, not by you. A plan that permits the distribution then pays the excess back to you, together with whatever it earned while it sat in the plan. Where the deferrals went into more than one plan you get to choose which of them refunds the money, and any plan willing to make these distributions can be the one, but each plan has to hear from you separately and be told how much is to come out of it, because none of them can see the others. What none of this changes is the tax: an excess deferral counts as income for the year it was deferred, so the year of the mistake is the year it is taxed, whatever route the money takes afterwards.
Excess deferrals. If your deferrals exceed the limit, you must notify your plan by the date re- quired by the plan. If the plan permits, the ex- cess amount will be distributed to you. If you participate in more than one plan, you can have the excess paid out of any of the plans that per- mit these distributions. You must notify each plan by the date required by that plan of the amount to be paid from that particular plan. The plan must then pay you the amount of the ex- cess, along with any income earned on that amount, by April 15 of the following year. You must include the excess deferral in your income for the year of the deferral.
Publication 525 (2024), Taxable and Nontaxable Income (IRS)
Roth deferrals count against the same limit
Employers with certain retirement plans can create qualified Roth contribution programs so that you may elect to have part or all of your elective deferrals designated as after-tax Roth contributions. The key point is that designated Roth contributions are treated as elective deferrals for purposes of the contribution limits, except that they are included in your income in the year contributed rather than being excluded like pre-tax deferrals. This means that Roth contributions count against the same annual limit as pre-tax elective deferrals, even though you pay tax on them now. Your retirement plan must maintain separate accounts and record-keeping for the designated Roth contributions. In addition, your retirement plan may allow you to designate certain nonelective contributions or matching contributions as Roth contributions, and these are also included in income. Qualified distributions from a Roth account are not included in income when distributed.
Designated Roth contributions are treated as elective deferrals, except that they're included in income.
Publication 525 (2024), Taxable and Nontaxable Income (IRS)
The window to pull out an excess deferral closes April 15
When you contribute more than the annual limit to your 401(k), the excess amount must be distributed back to you by April 15 of the following year to avoid penalties. The plan must pay you the excess amount along with any income earned on that amount by this deadline. You must include the excess deferral in your income for the year you made the deferral by filing Form 1040 or 1040-SR to add the excess amount to earned income on line 1h. If you withdraw the excess by April 15, you don't have to include it in your income again when you receive it. However, if you leave the excess in the plan past the deadline, you face double taxation: you're taxed once when you contribute it (because you already reported it as income), and taxed again when you eventually withdraw it as a distribution.
The plan must then pay you the amount of the ex- cess, along with any income earned on that amount, by April 15 of the following year. You must include the excess deferral in your income for the year of the deferral. File Form 1040 or 1040-SR to add the excess deferral amount to earned income on line 1h.
Publication 525 (2024), Taxable and Nontaxable Income (IRS)
There is no form to file - your employer reports it on your W-2
There is no separate form for you to file with the IRS to report your 401(k) elective deferrals. Instead, your employer handles the reporting. Your employer generally should not include your elective deferrals in your wages shown in Form W-2, box 1. Instead, your employer marks the Retirement plan checkbox in box 13 and shows the total amount you deferred in box 12 of your W-2. This allows the IRS to track your contributions and verify that you stayed within the annual limits. The retirement plan checkbox also indicates to the IRS that you have access to an employer-sponsored retirement plan, which may affect the deductibility of traditional IRA contributions depending on your income level.
Reporting by employer. Your employer gen- erally shouldn't include elective deferrals in your wages in Form W-2, box 1. Instead, your em- ployer should mark the Retirement plan check- box in box 13 and show the total amount defer- red in box 12.
Publication 525 (2024), Taxable and Nontaxable Income (IRS)
Leave the excess in the plan and it is taxed twice
When you contribute more than the annual limit to your 401(k), the excess amount must be distributed back to you by April 15 of the year following the year you made the deferral. You must include the excess in your income for the year you made the deferral. If you fail to withdraw the excess by the April 15 deadline and leave it in the plan, you face double taxation: the IRS taxes you once when you contribute it because you already included it in your income, and then taxes you again when you eventually receive it as a distribution from the plan. The double taxation exception applies only if the excess deferral was a designated Roth contribution. To avoid this penalty, work with your plan administrator to ensure the excess plus any earnings on that amount are paid out before the deadline.
Excess not distributed. If you don't take out the excess amount, you can't include it in the cost of the contract even though you inclu- ded it in your income. Therefore, you're taxed twice on the excess deferral left in the plan—once when you contribute it, and again when you receive it as a distribution (unless the excess deferral was a designated Roth contri- bution).
Publication 525 (2024), Taxable and Nontaxable Income (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Notice 2023-75 (IRS)
- Elective deferral
The limitation under section 402(g)(1) on the exclusion for elective deferrals described in section 402(g)(3) is increased from $22,500 to $23,000.
- Age 50 catch-up
The dollar limitation under section 414(v)(2)(B)(i) for catch-up contributions to an applicable employer plan other than a plan described in section 401(k)(11) or section 408(p) for individuals aged 50 or over remains $7,500.