IRS annual contribution ceilings
For 2024, employee elective deferrals to 401(k) and 403(b) plans are capped at $23,000 ($23,500 in 2025). Catch-up contributions allow employees 50 and older to contribute an extra $7,500.
The total combined limit from all sources under IRC § 415(c) (employee deferral + employer match + profit sharing) is $69,000 for 2024 ($70,000 for 2025).
Worked example: Maximum defined contribution additions
A 52-year-old worker can defer $23,000 plus a $7,500 catch-up contribution ($30,500 total). With an employer profit-sharing contribution of $40,000, total contributions equal $70,500, within the allowable § 415(c) limit including catch-up ($76,500).
Inputs for the us pension annual allowance calculator
Total Contributions & Age
Enter your total contributions and select whether you are eligible for age 50+ catch-up.
CALCULATOR QUESTIONS
US pension annual allowance calculator questions
What happens if you exceed the IRS 401(k) limit?
Excess deferrals must be distributed back to you with attributable earnings before Tax Day (April 15) to avoid double taxation.