How often does the 401k annual limit increase?

Each year, usually in October or November, the Internal Revenue Service (IRS) reviews and sometimes adjusts the maximum contribution limits for 401 (k) plans, individual retirement accounts (IRAs), and other retirement savings vehicles. In October 2022, the IRS made updates for 2023. 1

Does the 401k contribution limit increase in 2023?

401 (k) limit increases to $22,500 for 2023, IRA limit rises to $6,500 WASHINGTON — The Internal Revenue Service announced today that the amount individuals can contribute to their 401 (k) plans in 2023 has increased to $22,500, up from $20,500 for 2022.

What is the 401k annual limit for 2022?

For 2022, your individual 401 (k) contribution limit is $20,500, or $27,000 if you’re age 50 or older. For 2023, 401 (k) contribution limits for individuals are $22,500, or $30,000 if you’re 50 or older. These individual limits are cumulative across 401 (k) plans.