Safe Harbor Match Limit 2024. In 2024, the contribution limit for employees who participate in traditional 401(k) plans is $23,000, according to the irs. The irs imposes a limit on the amount of income on which your employer can offer a contribution match.
In 2024, the 401 (k) contribution limit for participants is increasing to $23,000, up from $22,500 in 2023. The match rate cannot increase as elective deferral rate increases.
A Discretionary Match Cannot Exceed 4% Of Compensation.
This plan is also known as an “elective” safe harbor.
To Put It Simply, The Answer Is “No.” An Employer Matching Contribution Does Not Count Towards The Maximum Contribution Limit Amount.
However, the irs does limit.
$19,500 In 2020 And 2021 And $19,000 In 2019), Plus $7,500 In 2023;.
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And The Total Annual Contribution Amount (Employee Plus.
In 2024, your employees’ 401(k) contribution limits will increase to $23,000, up from $22,500 in 2023.
In 2024, The 401 (K) Contribution Limit For Participants Is Increasing To $23,000, Up From $22,500 In 2023.
Both safe harbor 401(k) and traditional 401(k) plans have a 2024 contribution limit of $23,000.