What is a 401(k) Plan and How Does it Work?
HR Digest
MARCH 28, 2023
It’s important to note that there are limits to how much an employee can contribute to a 401(k) plan each year. For 2023, the limit is $20,500 for individuals under age 50 and $27,000 for individuals age 50 and over. This allows the money in the account to grow faster than it would in a taxable account.
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