Irs 401k Limits 2024 Include Employer Match

Irs 401k Limits 2024 Include Employer Match. Employer matching contributions are a 100% match on the first 3% of compensation plus a 50% match on deferrals between 3% and 5% (4% of total compensation). Many retirement plans, such as simple iras and 401(k)s, provide that your employer will match some portion of the amount you contribute to your retirement.

Even though 5% of $500,000 is. If you contribute, say, $23,000 toward your 401(k) in 2024 and your employer adds $5,000, you’re still within the irs limits.