Contribution Limits for Employer-Sponsored Retirement Plans | American Funds
  • Forms
  • Search
  • Forms
  • MY ACCOUNTS
  • INVESTMENTS
  • INSIGHTS
  • PRODUCTS
  • PLANNING
  • SERVICE & SUPPORT

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 $270,000 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 $270,000 per participant) or $54,000, 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 $270,000 per participant)

25% of total eligible payroll (payroll limited to $270,000 per participant)

Maximum allocation from employer & participant to participant’s account

100% of participant’s total pay or $54,000, 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 $54,000, 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 $54,000 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 $54,000 whichever is less

100% of participant’s total pay or $54,000 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.

Related Tools

Other Resources

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

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. 

Closex