# Contribution Limit

*Retirement & Benefits — Finicade finance glossary*

A contribution limit is the annual maximum you can put into a tax-advantaged account, set by statute and usually indexed to inflation. The limits stack in specific ways that are easy to get wrong: the employee deferral limit applies across all 401(k)s you hold in a year, while a separate, much higher total limit covers employer contributions and after-tax money. Exceeding a limit triggers penalties until it's corrected.

**Also known as:** annual contribution limit, 402(g) limit, annual allowance

**Related terms:** [401(k)](https://finicade.com/glossary/401k), [Roth IRA](https://finicade.com/glossary/roth-ira), [Catch-Up Contribution](https://finicade.com/glossary/catch-up-contribution), [Mega Backdoor Roth](https://finicade.com/glossary/mega-backdoor-roth), [Health Savings Account (HSA)](https://finicade.com/glossary/health-savings-account)

Source: https://finicade.com/glossary/contribution-limit