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

The maximum contribution limit for a 401(k) plan in 2023 is set at $22,500. This limit applies to employee contributions made to their 401(k) accounts and reflects adjustments for inflation designed to help employees save adequately for retirement.

Over the years, the contribution limits for retirement plans such as the 401(k) have been periodically increased to account for changes in the cost of living. Therefore, it's essential for individuals to stay updated with the latest figures released by the IRS to ensure they are maximizing their retirement savings potential without exceeding the allowable contributions.

In this instance, the other figures represent prior limits or misunderstandings of the adjustments that occur year-to-year. Ensuring awareness of the current year's specific limit is crucial for effective financial planning and maximizing tax-deferred growth.