The maximum amount that an employer and employee can contribute to the 401(k) plan gets adjusted periodically to reflect inflation. For 2021, the limit on the employee contribution is $19,500 per year for workers under age 50. For people over 50, an additional $6,500 is added as a catch-up contribution.
In case of matching employer contributions, or if employees elect to make additional after-tax contributions, the total employee/employer contribution for workers under 50 is limited to $58,000, or 100 percent of employee compensation, whichever is lower. For those 50 and over, the current limit is $64,500.