401k Contribution Limits: A Historical Perspective

401k Contribution Limits History

1978: The Employee Retirement Income Security Act (ERISA) was enacted, establishing the 401(k) plan as a tax-advantaged retirement savings vehicle. The initial contribution limit was $7,500 or 25% of the participant's compensation, whichever was lower.

1982: The Economic Recovery Tax Act (ERTA) increased the contribution limit to $15,000 or 100% of compensation, whichever was lower.

1984: The Tax Reform Act (TRA) reduced the contribution limit to $30,000 or 25% of compensation, whichever was lower.

1987: The Tax Reform Act (TRA) increased the contribution limit to $7,000 or 25% of compensation, whichever was lower.

1993: The Omnibus Budget Reconciliation Act (OBRA) increased the catch-up contribution limit for participants aged 50 and older to $1,000.

1997: The Taxpayer Relief Act (TRA) increased the contribution limit to $10,000 or 25% of compensation, whichever was lower.

2000: The Economic Growth and Tax Relief Reconciliation Act (EGTRRA) increased the contribution limit to $11,000 or 25% of compensation, whichever was lower.

2002: The Economic Growth and Tax Relief Reconciliation Act (EGTRRA) increased the contribution limit to $12,000 or 25% of compensation, whichever was lower.

2003: The Jobs and Growth Tax Relief Reconciliation Act (JGTRRA) further increased the contribution limit to $13,000 or 25% of compensation, whichever was lower.

2004: The American Jobs Creation Act (AJCA) increased the contribution limit to $14,000 or 25% of compensation, whichever was lower.

2005: The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act (TRUIRJCA) increased the contribution limit to $15,000 or 25% of compensation, whichever was lower.

2006: The Pension Protection Act (PPA) increased the contribution limit to $16,000 or 25% of compensation, whichever was lower, and introduced a catch-up contribution limit of $5,000 for participants aged 50 and older.

2007: The Pension Protection Act (PPA) further increased the contribution limit to $17,500 or 25% of compensation, whichever was lower.

2008: The Economic Stimulus Act (ESA) increased the contribution limit to $18,000 or 25% of compensation, whichever was lower.

2009: The American Recovery and Reinvestment Act (ARRA) increased the contribution limit to $19,000 or 25% of compensation, whichever was lower, and extended the catch-up contribution limit of $5,000 for participants aged 50 and older through 2012.

2010: The Patient Protection and Affordable Care Act (ACA) increased the contribution limit to $20,500 or 25% of compensation, whichever was lower.

2011: The American Taxpayer Relief Act (ATRA) further increased the contribution limit to $22,000 or 25% of compensation, whichever was lower, and made the catch-up contribution limit of $5,000 for participants aged 50 and older permanent.

2012: The American Taxpayer Relief Act (ATRA) increased the contribution limit to $23,000 or 25% of compensation, whichever was lower.

2013: The American Taxpayer Relief Act (ATRA) further increased the contribution limit to $24,000 or 25% of compensation, whichever was lower.

2014: The Moving Ahead for Progress in the 21st Century Act (MAP-21) increased the contribution limit to $25,000 or 25% of compensation, whichever was lower.

2015: The Tax Increase Prevention Act (TIPA) further increased the contribution limit to $26,000 or 25% of compensation, whichever was lower.

2016: The Tax Increase Prevention Act (TIPA) increased the contribution limit to $27,000 or 25% of compensation, whichever was lower.

2017: The Tax Cuts and Jobs Act (TCJA) increased the contribution limit to $28,000 or 25% of compensation, whichever was lower.

2018: The Tax Cuts and Jobs Act (TCJA) further increased the contribution limit to $29,000 or 25% of compensation, whichever was lower.

2019: The Tax Cuts and Jobs Act (TCJA) increased the contribution limit to $30,000 or 25% of compensation, whichever was lower.

2020: The SECURE Act increased the contribution limit to $31,000 or 25% of compensation, whichever was lower, and increased the catch-up contribution limit for participants aged 50 and older to $6,000.

2021: The SECURE Act further increased the contribution limit to $32,000 or 25% of compensation, whichever was lower.

2022: The SECURE Act 2.0 further increased the contribution limit to $33,000 or 25% of compensation, whichever was lower.

2023: The SECURE Act 2.0 further increased the contribution limit to $34,000 or 25% of compensation, whichever was lower.

2024: The SECURE Act 2.0 further increased the contribution limit to $35,000 or 25% of compensation, whichever was lower.

2025: The SECURE Act 2.0 further increased the contribution limit to $36,000 or 25% of compensation, whichever was lower.**

Table 1: 401k Contribution Limits by Year