Retirement Contribution Limits and What Changed This Year
Complete retirement contribution limits for 401k plans, IRAs, and HSAs in one reference table. Learn how to adjust your January payroll deductions smoothly.
Every autumn, the Internal Revenue Service calculates cost-of-living adjustments that dictate how much pre-tax and tax-advantaged money Americans can shelter in retirement accounts. If you leave your payroll contribution percentages unchanged from last year, you will leave tax deductions and employer matching funds on the table.
Workplace retirement accounts and individual savings accounts have different legal limits, different contribution deadlines, and different rules regarding who qualifies. Understanding the boundaries of each tax wrapper allows you to allocate your savings efficiently across workplace 401(k)s, Roth IRAs, and Health Savings Accounts. Below is the master reference table of contribution limits for the current tax year, followed by the exact payroll adjustments required to pace your contributions.
The master contribution limits table
The table below details statutory contribution maximums across all major tax-advantaged account types:
| Account type | Standard limit (Under 50) | Catch-up limit (Age 50+) | Special catch-up (Ages 60–63) | Annual contribution deadline |
|---|---|---|---|---|
| 401(k), 403(b), 457(b), Thrift Savings Plan (TSP) | $23,500 | +$7,500 ($31,000 total) | +$11,250 ($34,750 total) | December 31 (payroll deduction) |
| Traditional and Roth IRA | $7,000 | +$1,000 ($8,000 total) | N/A (standard catch-up applies) | Tax filing deadline (mid-April) |
| Health Savings Account (HSA) Individual | $4,300 | +$1,000 (Age 55+) | N/A | Tax filing deadline (mid-April) |
| Health Savings Account (HSA) Family | $8,550 | +$1,000 (Age 55+) | N/A | Tax filing deadline (mid-April) |
| SIMPLE IRA and SIMPLE 401(k) | $16,500 | +$3,500 ($20,000 total) | +$5,250 (SECURE 2.0 rules) | December 31 (payroll deduction) |
| SEP-IRA and Solo 401(k) overall limit | $70,000 | +$7,500 (Solo 401(k) only) | N/A | Tax filing deadline with extensions |
| Section 415(c) total plan additions (401k) | $70,000 | +$7,500 ($77,500 total) | +$11,250 ($81,250 total) | December 31 |
The enhanced catch-up rule for ages sixty through sixty-three
Under Section 109 of the SECURE 2.0 Act, retirement savers aged 60, 61, 62, and 63 qualify for an enhanced catch-up contribution tier. While workers aged 50 and older receive a standard $7,500 catch-up allowance, participants in this specific age band can contribute an enhanced catch-up amount equal to $11,250 or 150% of the standard catch-up limit.
This allows older workers during their peak earning years immediately prior to retirement to deposit up to $34,750 of their salary into a workplace 401(k) or 403(b). In the year an employee turns 64, their catch-up limit reverts to the standard $7,500 allowance.
The total plan limit: why employer matching is different
A common point of confusion among employees is whether company matching contributions count toward the $23,500 limit. They do not.
The tax code divides retirement contributions into two separate ceilings under Section 415(c):
- The employee elective deferral limit ($23,500): This caps the salary dollars you choose to withhold from your paycheck across all Traditional pre-tax and Roth 401(k) accounts combined.
- The overall annual additions limit ($70,000): This caps the grand total of your employee deferrals, your employer matching contributions, profit-sharing allocations, and after-tax non-Roth contributions.
If you earn $150,000 and your employer provides a generous 6% dollar-for-dollar match ($9,000), you can still contribute your full $23,500 employee limit. Your $23,500 combined with the company's $9,000 match equals $32,500, which sits comfortably below the $70,000 Section 415(c) ceiling.
Pacing payroll deductions to protect your employer match
When you decide to max out your retirement plan, how you structure your payroll deductions matters just as much as the total dollar amount. Front-loading contributions by setting an aggressive 40% deduction in January can cost you thousands of dollars in lost employer matching.
Consider an earner making $95,000 annually paid bi-weekly across twenty-six paychecks ($3,653.85 gross per paycheck). The company offers a 5% per-paycheck dollar-for-dollar match, equal to $182.69 per pay period.
| Contribution strategy | Per-paycheck deduction | Date employee cap ($23,500) is reached | December employer match captured |
|---|---|---|---|
| Aggressive front-loading (35% deduction) | $1,278.85 / paycheck | Month 9 (Paycheck 19 in September) | $0 in checks 20–26 ($1,278 lost match if no true-up) |
| Even dollar pacing ($903.85 / paycheck) | $903.85 / paycheck | Month 12 (Paycheck 26 in late December) | Full 100% match captured on all 26 paychecks ($4,750 total) |
If your employer 401(k) plan does not include a true-up provision (an annual administrative reconciliation that retroactively pays missed matching dollars), reaching your contribution limit in September means your contributions stop on paycheck 19. Because you contribute $0 on paychecks 20 through 26, the employer deposits $0 in matching funds for those seven pay periods. You lose $1,278 in free company money. Review our detailed guide on how a 401(k) true-up works to check your plan document.
To avoid this trap, take the annual employee elective deferral limit ($23,500) and divide it by your total annual pay periods: $23,500 / 26 paychecks = $903.85 per paycheck, or $23,500 / 24 paychecks = $979.17 for semi-monthly pay. Instruct payroll to deduct that fixed dollar amount rather than a fluctuating percentage.
Per-person versus per-household limits
Retirement limits apply to individuals, not tax returns. Married couples filing jointly do not share a single $23,500 401(k) or $7,000 IRA cap. Each spouse has their own independent set of contribution limits.
A married dual-income household where both spouses have access to workplace 401(k) plans can contribute up to $47,000 combined ($23,500 each) in employee deferrals, plus up to $14,000 across two individual IRAs ($7,000 each), for a total annual tax-sheltered investment pool of $61,000.
Even if one spouse does not earn income outside the home, tax law allows a Spousal IRA. A working spouse with sufficient earned income can fund an independent Traditional or Roth IRA in the non-working spouse's name up to the full $7,000 annual limit, provided total household earnings cover both contributions.
The only notable exception to the per-person rule is the Health Savings Account. The HSA family limit ($8,550) is a single combined limit shared across all family members covered under a high-deductible health plan. Spouses cannot contribute $8,550 each; their combined contributions cannot exceed the family ceiling.
When this does not apply
If your employer offers a high-yield retirement match and you are currently working through high-interest credit card debt, maxing out your full $23,500 elective deferral limit is usually the wrong immediate move. The priority order of personal finance dictates that you contribute only enough to capture the full employer match (which provides an immediate 50% to 100% return on investment), and direct all remaining surplus cash flow toward paying off revolving credit lines charging 20% to 28% interest. See our guide on whether to invest or pay off debt to prioritize cash flow.
In addition, Roth IRA contribution limits phase out at higher income thresholds. If your modified adjusted gross income exceeds statutory IRS phase-out bands, you cannot make direct Roth IRA contributions. In that scenario, utilize a Backdoor Roth IRA strategy by making a non-deductible Traditional IRA contribution and immediately converting it to a Roth IRA.
Next steps
- Confirm your company match formula and verify whether your 401(k) plan features an automated true-up provision.
- Divide the updated $23,500 employee limit by your total annual pay periods (24 or 26) to calculate your exact per-paycheck deduction.
- Log into your employer benefits portal this week to submit your adjusted contribution dollar amount for the first January payroll run.
- If you utilize an IRA, configure an automatic monthly transfer of $583.33 ($7,000 / 12 months) into your investment brokerage account.
- If enrolled in a qualifying high-deductible health plan, adjust your payroll HSA deductions to pace toward the $4,300 individual or $8,550 family limit.
