Q:

What is the maximum contribution you can make to your 401(k)?

A:

Quick Answer

As of 2015, the maximum contribution a taxpayer can make to their 401(k) plan is $18,000, according to the Internal Revenue Service. Taxpayers 50 years of age and older are entitled an additional $6,000 catch-up contribution.

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What is the maximum contribution you can make to your 401(k)?
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Full Answer

While the contribution ceiling to traditional IRAs remained unchanged at $5,500, the 401(k) maximum for 2015 is a $500 increase from the previous tax year; triggered by an increase in the cost-of-living index, states the IRS. The limits are applicable to every 401(k) account a taxpayer has active for the current year. Persons working two or more jobs or those that switched jobs mid-year are encouraged to track their contributions to avoid exceeding the threshold.

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