Q:

What are the 401(k) contribution limits?

A:

Quick Answer

Employees can contribute a maximum of $18,000 per year to most 401(k) retirement plans in 2015 and 2016, according to the IRS. Employees aged 50 and over may contribute an additional $6,000 to a plan that allows catch-up contributions, yielding a maximum contribution of $24,000 per year.

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Full Answer

The limit on employee deferrals to a SIMPLE 401(k) plan is $12,500 per year for 2015 and 2016, according to the IRS. Employees aged 50 and over may be able to make an additional $3,000 catch-up contribution each year. The IRS did not raise the contribution limits for 2016 but may raise the limits in the future for cost-of-living adjustments.

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