What is the 401(k) contribution limit?


Quick Answer

As of 2015, the annual contribution limit for traditional 401(k) plans is $18,000, as stated on the Fidelity Investment website. For contributors age 50 and older, the annual catch-up contribution limit is $6,000.

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Full Answer

401(k) contribution limits are decided by the IRS, which states that there are lower limits for SIMPLE 401(k) plans. Those plans allow a $12,500 annual contribution with a $3,000 annual catch-up limit. The IRS may increase the contribution limits of any retirement plan in future years to adjust for cost of living. According to Fidelity Investment, contribution limits may differ or be restricted with some employer-sponsored retirement plans.

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