How much can you contribute to a 401k in 2023?

The 401 (k) contribution limit in 2023 will be $22,500, up from $20,500 in 2022. If you are 50 or older, you are eligible to make additional catch-up contributions each year to your 401 (k). You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services.

How much is the 401k catch-up contribution for 2023?

In 2023, workers under 50 will be able to contribute a total of $22,500 to a 401 (k). That's an almost 10% increase. Meanwhile, the cap on catch-up contributions will rise from $6,500 to $7,500. So all told, workers 50 and older will have the option to put up to $30,000 into a 401 (k) next year.

What are the benefits of contributing to a 401k?

The other huge benefit of the 401 (k) is that it allows you to put a lot of money away for retirement in a tax-advantaged way. The annual 401 (k) contribution limit is $20,500 for tax year 2022, with an extra $6,500 allowed as a catch-up contribution every year for participants age 50 or older.