# Historical 401(k) Contribution Limit

Written by:
PK

Every year, the IRS sets the maximum 401(k) contribution limits based on inflation (measured by CPI). There are actually multiple limits, including an individual contribution, an employer contribution, and an age 50+ catch-up contribution.

If you're currently working at a company with a plan, we highly suggest familiarizing yourself with its mechanics and any matching funds. Contributing to your 401(k) is an excellent way to help set yourself up for retirement.

#### What is the 401(k) contribution limit in 2021?

The 2021 401(k) individual contribution limit matches the limit in 2020 – an up to $19,500. In 2021, employers can contribute up to$38,500, up from a limit of $37,500 in 2020 – that's a total of$58,000 in 2021 (up from $57,000 in 2020). If you are 50 years old or older, you can also contribute up to$6,500 in "catch-up" contributions on top of your individual and employer contributions.

## Other Historical Sources on the 401(k) Limit

Along with the excellent ICI presentation, we consulted a number of additional sources for this data:

If you find the 401(k) limit interesting, we also have an article detailing the history of the IRA Limit. To model potential 401(k) growth, see the 401(k) calculator.

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