Q:

Is there a maximum yearly contribution for 401(k) accounts?

A:

Quick Answer

The maximum amount someone can allocate to an elective 401(k) plan is $18,000 as of 2015, according to the Internal Revenue Service. The maximum amount is updated each year by the IRS to adjust to changes in the cost of living.

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Full Answer

Someone who participates in multiple 401(k) plans must not exceed the maximum level across the multiple accounts. The IRS allows people over 50 to contribute additional funds through a "catch-up" contribution allowance, according to its website. As of 2015, the maximum someone can add for catch-up contributions is $6,000. This addition means someone 50 or older can contribute up to $24,000 total as of 2015.

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