The Internal Revenue Service (IRS) updated the 401k contribution limit on Oct. 26, 2020, as under :
- Employees can contribute up to $19,500 to their 401(k) plan for 2020 and 2021.
- Catch up contribution for persons aged 50 or over is $6,500 in 2020 and 2021.
As far as the contribution limit under 401k plan for employers is concerned, they can contribute up to $58,000 (or $64,500 with the catch-up contribution). In the year 2020 , the limit was $57,000 (catch-up at $63,500) in 2020;