American Funds ®

Retirement Planning

Contribution Limits for Employer-Sponsored Retirement Plans

A summary of annual contribution limits for 401(k), 403(b), SEP, SIMPLE, money purchase and profit-sharing retirement plans.

Certain limits may vary; check with your employer for the specifics of your plan.

401(k)

403(b)

SEP

SIMPLE IRA

Money Purchase

Profit-Sharing

Participant contribution

$18,000 – Salary deferrals into other qualified plans count toward the limit

$18,000

N/A

$12,500

N/A

N/A

Participant catch-up contribution1

Up to $6,000

$6,000

N/A

$3,000

N/A

N/A

Maximum contribution from employer & participant that employer can deduct

25% of total eligible payroll (payroll limited to $265,000 per participant)

Tax deduction is not an issue for tax-exempt organizations; however, contributions are generally subject to the same tax-deductible limits applicable to for-profit organizations

25% of employee’s pay (pay limited to $265,000 per participant) or $53,000, whichever is less

$25,0002 ($12,500 participant contribution + $12,500 employer match; employer match limited to 3% of compensation)

25% of total eligible payroll (payroll limited to $265,000 per participant)

25% of total eligible payroll (payroll limited to $265,000 per participant)

Maximum allocation from employer & participant to participant’s account

100% of participant’s total pay or $53,000, whichever is less; if age 50 or older, a catch-up contribution of up to $6,000 may be added

100% of participant’s pay or up to $53,000, whichever is less; if age 50 or older, a catch-up contribution of up to $6,000 may be added

25% of participant’s pay or $53,000 whichever is less

$25,0002; if age 50 or older, a catch-up contribution of up to $3,000 + $3,000 employer match may be added

100% of participant’s total pay or $53,000 whichever is less

100% of participant’s total pay or $53,000 whichever is less

1Catch-up contributions may be permitted in addition to annual contributions for individuals age 50 and over.

2Compensation of at least $416,667 is required for the $12,500 maximum match.

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Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses , which can be obtained from a financial professional and should be read carefully before investing.   

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.