The 401(k) contribution limit and the company match are two separate numbers

No. The annual contribution limit — the amount you can put into your 401(k) from your own paycheck — does not include your employer's matching contribution. The IRS sets a limit on what you contribute. Your employer's match is added on top of that limit and counts toward a different, higher ceiling.

For 2024, you can contribute up to $23,500 of your own money to a 401(k) if you are under 50. If you are 50 or older, you can add an extra $7,500 in catch-up contributions, for a total of $31,000. These numbers come from your paycheck only.

Your employer's match does not reduce how much you can contribute from your salary. If your employer matches 50% of the first 6% you contribute, that match money goes in separately and is not subtracted from your $23,500 limit.

Key Takeaways

  • Your personal contribution limit for 2024 is $23,500 (or $31,000 if you are 50 or older), and this limit applies only to money from your paycheck.
  • Your employer's matching contribution does not count against your personal limit and can be added on top of what you contribute.
  • Both your contributions and your employer's match do count toward a combined limit of $69,000 for 2024 (or $76,500 if you are 50 or older).
  • If your employer's match would push the combined total over the annual limit, the excess match is not deposited into your account.

How the combined limit works

While your personal contribution limit is separate from the company match, there is a ceiling that covers both together. The total annual addition limit includes your contributions, your employer's match, and any employer profit-sharing contributions. For 2024, this combined limit is $69,000 per year (or $76,500 if you are 50 or older).

In most cases, this combined limit does not affect you. If you contribute $23,500 and your employer matches $5,000, the total is $28,500 — well below the $69,000 ceiling. The combined limit matters mainly for people with very high salaries or employers who make large matching or profit-sharing contributions.

If the combined total would exceed $69,000, your employer is responsible for reducing or removing the match to stay within the limit. You will not be penalized, but you may receive less matching money than you expected.

Why the IRS created two separate limits

The IRS distinguishes between what you contribute and what your employer contributes because they want to prevent very high earners from sheltering unlimited income in retirement accounts. Your personal limit ensures that no matter how much you earn, you cannot put more than $23,500 of your own money in. The combined limit ensures that even with employer contributions, the total does not exceed $69,000.

This structure also protects lower-income workers. An employer cannot use matching contributions to give some employees vastly more retirement savings than others. The limits explore equally to everyone at the company.

What happens if you change jobs mid-year

Your $23,500 personal contribution limit applies across all employers in a single calendar year. If you worked at Company A and contributed $15,000, then moved to Company B, you can only contribute $8,500 more in 2024 across both accounts combined. You must track this yourself — your new employer will not know what you contributed at your previous job.

The combined limit also follows you. If Company A contributed $5,000 in match and Company B contributes $3,000 in match, the total is $8,000. As long as your personal contributions plus all employer contributions stay under $69,000, you are within the rules.

If you exceed the limit by accident, contact your plan administrator when ready. They can arrange a corrective distribution to bring you back into compliance, though you may owe taxes on the excess.

How to track your contributions across multiple accounts

If you have a 401(k) and also contribute to a 403(b) or other workplace retirement plan, those contributions count toward the same $23,500 limit. A 401(k) at one employer and a 401(k) at another employer also share the same limit. You are responsible for making sure your total does not exceed the annual cap.

Most payroll systems will warn you if you are approaching the limit, but not all do. If you have accounts at multiple employers, check your pay stubs or log into each plan's website to see your year-to-date contributions. Add them together and compare to the current year's limit.

Employer matches from different jobs do not combine the same way. Each employer's match is tied to that employer's plan and does not transfer if you leave. When you change jobs, your old employer's match stays in that plan (or rolls over if you move the money), and your new employer's match goes into their plan.

Catch-up contributions for people 50 and older

If you are 50 or older, you can contribute an additional $7,500 per year on top of the standard $23,500 limit, bringing your personal limit to $31,000. This catch-up contribution is designed to help people save more as they approach retirement.

Your employer's match still does not count against your personal limit, whether you use the catch-up contribution or not. If you contribute $31,000 and your employer matches $6,000, the total is $37,000 — still below the $76,500 combined limit for people 50 and older.

Frequently Asked Questions

If my employer matches 100% up to 6%, does that count toward my $23,500 limit?

No. If you contribute 6% of your salary and your employer matches it dollar-for-dollar, that match is added to your account separately. Only your 6% counts against your $23,500 personal limit. The employer's match counts only toward the combined $69,000 limit.

What if my employer's match would put me over the $69,000 combined limit?

Your employer is required to stop contributing match money once the combined total would exceed $69,000. You will not receive the full match that year, but you will not face penalties. Your employer should notify you if this happens.

Do I have to contribute the maximum to get the full company match?

That depends on your employer's plan. Most plans match a percentage of what you contribute up to a certain amount — for example, 50% of the first 6% you contribute. If you contribute less than 6%, you receive a smaller match. Check your plan documents or ask your HR department for the exact match formula.

Can I contribute more than $23,500 if my employer offers a large match?

No. Your personal contribution limit is $23,500 regardless of how large your employer's match is. The match is separate money and does not increase what you can contribute from your paycheck.

If I max out my 401(k), do I still get the company match?

Yes, as long as the combined total stays under $69,000. If you contribute $23,500 and your employer's match is $5,000, you receive the full match. If the match would push the total over $69,000, your employer reduces or stops the match for that year.