What is the maximum contribution limit for a 401(k) in 2023?

The maximum contribution limit for a 401(k) in 2023 is indeed $22,500. This limit reflects the adjustments for inflation that are made regularly to contribution limits for retirement accounts. The increased limit allows individuals to save more for their retirement, which is particularly important as retirement approaches and there may be a greater need to boost savings.

This figure is crucial for those contributing to their employer-sponsored retirement plan, as maximizing contributions can significantly impact the growth of their retirement savings over time, benefiting from tax-deferred growth. For individuals under age 50, this is the standard limit, allowing for broader opportunities to enhance retirement readiness.

Meanwhile, while higher limits do exist for individuals aged 50 and older through catch-up contributions, those limits do not apply to the general contribution limits for the 401(k) in that year.