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Frequently Asked Questions

What is the maximum allowable contribution for 401k?

Great question and I updated the post with the information. Your employer’s 401K maximum contribution limit is is $49,000 or 100% of your salary, whichever is the smaller amount. Though most employers rarely give anywhere near the maximum, with most employers matching 3% to 6% of employee contributions.

What is the maximum amount you can contribute to your 401k?

The maximum amount workers can contribute to a 401(k) for 2018 is $18,500 if they’re younger than age 50. That’s a $500 increase from 2017, when the contribution limit was $18,000.

Is there a limit to 401k contribution?

There is a limit to how much you, as the employee, can contribute to your 401k. This is also known as the 402g limit (you can exceed this limit by making catch-up contributions if you are over age 50). There’s a limit to how much you and your employer combined can contribute, which is known as the 415c limit.


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