What is the maximum annual contribution limit to a 401(k) account?

The maximum annual contribution limit to a 401(k) account is set by the Internal Revenue Service (IRS) and is adjusted periodically for inflation. As of the most recent guidelines, individuals can contribute up to $19,000 to their 401(k) plans in a single tax year (note that this figure is for employees under the age of 50). For those aged 50 and above, there is an additional catch-up contribution allowed, which increases the total contribution limit further.

This limit is crucial for retirement planning, as it establishes how much you can contribute each year to ensure you're maximizing your retirement savings through your employer-sponsored retirement plan. Understanding these limits allows individuals to plan their finances accurately and take advantage of tax-deferred growth in their retirement savings.