Ilka Karmen

401k Limits 2024 Include Employer Match Fund. Employers must make a matching contribution of a maximum of 3% of a worker's salary or a nonelective contribution worth 2% of each participating employee's. For 2024, the limit on employee and employer contributions is $69,000 or 100% of employee compensation, whichever is lower (up from $66,000 for 2023).

Let’s look at an example where an employer matches up to 3% of your salary. 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.