401k Contribution Limit Calculator

401(k) Contribution Limit Calculator (2024)

Understanding the maximum amounts you can contribute to your 401(k) plan each year is crucial for maximizing your retirement savings. The IRS sets these limits, which can vary based on your age and whether you make "catch-up" contributions.

This calculator helps you determine your personal 401(k) contribution limits for the 2024 tax year, including the standard employee contribution, any applicable catch-up contributions, and the total overall limit that can be contributed by both you and your employer.

function calculate401kLimits() { // Get input values var employeeAge = parseFloat(document.getElementById("employeeAge").value); var annualSalary = parseFloat(document.getElementById("annualSalary").value); // Define 2024 IRS limits var standardEmployeeLimit2024 = 23000; var catchUpContributionLimit2024 = 7500; // For those age 50 and over var totalOverallLimit2024 = 69000; // Employee + Employer contributions // Validate inputs if (isNaN(employeeAge) || employeeAge < 18 || isNaN(annualSalary) || annualSalary = 50) { calculatedEmployeeLimit += catchUpContributionLimit2024; calculatedCatchUpAmount = catchUpContributionLimit2024; } // The employee's actual contribution is capped by their salary if it's lower than the IRS limit var actualEmployeeContributionCap = Math.min(calculatedEmployeeLimit, annualSalary); // The total overall contribution (employee + employer) is capped by 100% of compensation var effectiveTotalOverallLimit = Math.min(totalOverallLimit2024, annualSalary); // Calculate potential employer contribution space // This is the difference between the effective total overall limit and the employee's actual contribution cap var employerContributionSpace = effectiveTotalOverallLimit – actualEmployeeContributionCap; if (employerContributionSpace < 0) { employerContributionSpace = 0; // Cannot have negative employer contribution space } // Display results document.getElementById("standardEmployeeLimit").innerHTML = "$" + standardEmployeeLimit2024.toLocaleString('en-US'); document.getElementById("catchUpContributionAmount").innerHTML = "$" + calculatedCatchUpAmount.toLocaleString('en-US'); document.getElementById("yourTotalEmployeeLimit").innerHTML = "$" + actualEmployeeContributionCap.toLocaleString('en-US'); // Display actual cap based on salary document.getElementById("totalOverallLimit").innerHTML = "$" + effectiveTotalOverallLimit.toLocaleString('en-US'); document.getElementById("potentialEmployerContribution").innerHTML = "$" + employerContributionSpace.toLocaleString('en-US'); } // Run calculation on page load with default values window.onload = function() { calculate401kLimits(); };

Understanding 401(k) Contribution Limits

A 401(k) is a popular employer-sponsored retirement plan that allows employees to save and invest for retirement on a tax-advantaged basis. Contributions are typically made pre-tax, reducing your taxable income in the year you contribute. Earnings grow tax-deferred until withdrawal in retirement.

Employee Contribution Limit

The IRS sets a maximum amount you can contribute from your paycheck to your 401(k) each year. For 2024, this standard limit is $23,000. This limit applies to your pre-tax contributions, Roth 401(k) contributions, or a combination of both.

Catch-up Contributions

If you are age 50 or older by the end of the calendar year, the IRS allows you to make additional "catch-up" contributions. This provision is designed to help older workers boost their retirement savings as they approach retirement. For 2024, the catch-up contribution limit is an additional $7,500, bringing your total employee contribution limit to $30,500 if you qualify.

Total Overall Contribution Limit (Employee + Employer)

Beyond your personal contributions, there's an even higher limit on the total amount that can be contributed to your 401(k) from all sources – including your contributions, your employer's matching contributions, and any profit-sharing contributions. For 2024, this total overall limit is $69,000. This limit also cannot exceed 100% of your compensation.

Why These Limits Matter

• Maximize Tax Advantages: Contributing up to the limit allows you to take full advantage of the tax benefits offered by a 401(k).
• Boost Retirement Savings: Consistently contributing the maximum can significantly grow your retirement nest egg over time.
• Avoid Penalties: Exceeding these limits can lead to tax penalties, so it's important to stay within the IRS guidelines.

Examples:

Let's look at a few scenarios using the 2024 limits:

Example 1: Young Saver

• Age: 35
• Annual Salary: $75,000
• Standard Employee Contribution Limit: $23,000
• Catch-up Contribution: $0 (not yet 50)
• Your Total Employee Contribution Limit: $23,000
• Total Overall Contribution Limit (Employee + Employer): $69,000 (capped by IRS limit, not salary)
• Potential Employer Contribution Space: $46,000 ($69,000 – $23,000)

Example 2: Experienced Professional

• Age: 55
• Annual Salary: $120,000
• Standard Employee Contribution Limit: $23,000
• Catch-up Contribution: $7,500
• Your Total Employee Contribution Limit: $30,500 ($23,000 + $7,500)
• Total Overall Contribution Limit (Employee + Employer): $69,000 (capped by IRS limit, not salary)
• Potential Employer Contribution Space: $38,500 ($69,000 – $30,500)

Example 3: Lower Salary Scenario

• Age: 40
• Annual Salary: $40,000
• Standard Employee Contribution Limit: $23,000
• Catch-up Contribution: $0
• Your Total Employee Contribution Limit: $23,000 (actual contribution cannot exceed $40,000 salary)
• Total Overall Contribution Limit (Employee + Employer): $40,000 (capped by 100% of salary)
• Potential Employer Contribution Space: $17,000 ($40,000 – $23,000)

Always consult with a financial advisor or your plan administrator for personalized advice regarding your specific situation and the most current IRS guidelines.