Can’t: Exceed Your Annual Contribution Limits

No matter which type of 401(k) plan your company offers you, you’ll have to go by the annual IRS contribution limits. For 2022, the limit on employee elective deferrals is $20,500. If you’re 50 years old or older, you can contribute an additional $6,50.

For 2021, the total amount that you were able to contribute to your account, including your own contributions, your employer’s contributions, and any other additions, was the lesser of $58,000 ($64,500 including catch-up contributions) or 100% of your earned compensation.

… Now that we’ve covered the basics, here are a few more details you should consider: