Each year, the IRS sets what’s known as the “annual deferral limit,” which dictates the maximum amount you can contribute across all your employer-sponsored retirement plans.

This limit applies to pre-tax and Roth employee contributions for 401(k) plans, 403(b) plans, Starter 401(k), SARSEP plans, and SIMPLE IRA plans. Any contributions you receive from your employer, such as matching or profit sharing, do not count toward this total.

The annual participant contribution limit for a standard 401(k) plan is $23,000 for 2024. The standard catch-up contribution limit is $7,500.

The annual participant deferral limit for a standard 401(k) plan is $23,500 for 2025 (up from $23,000 in 2024).

If you are over the age of 50, you are also eligible to make catch-up contributions. For 2025, the standard catch-up contribution limit is $7,500 (unchanged from 2024).

However, starting in 2025, employees aged 60-63 during the year will have an extended catch-up limit of $11,250 instead of the standard catch-up limit of $7,500. Just like the standard catch-up limit, the extended catch-up limit may increase each year.

For 2025, here are the total employee contribution limits:

If you have a Starter 401(k) plan, the maximum you can contribute to that account is $6,000 for the year.

If you are over the age of 50, you are also eligible to contribute an additional $1,000 as catch-up contributions to a Starter 401(k). However, if you contribute to more than one employer-sponsored plan, the standard 401(k) deferral limits would apply across all your retirement accounts.

If you exceed these limits, then you may be eligible to receive a refund of the additional funds, taking into account any gains or losses incurred.

Check out this article to learn more about what happens if you exceed the annual deferral limit.