401(k) contribution limits
401(k) plans are also subject to several contribution limits.
First there's the annual employer salary deferral limit. For 2022, that's $20,500, and it rises to $22,500 in 2023. Employees 50 and older can contribute an additional $6,500 as a catch-up contribution in 2022, or $7,500 in 2023.
Next there's the overall contribution limit, which combines both employer and employee contributions. In 2022, it's $61,000, or $67,500 for employees 50 and older. In 2023, the combined limit rises to $66,000, or $73,500 for employees 50 and older. Employer contributions are also limited to 25% of an employee's salary.