How much can an employee contribute to a 401k plan at maximum this year?

The maximum contribution an employee can make to a 401(k) plan for the specified year is set by the IRS and may change annually. For the year in question, the limit is indeed $22,500. This contribution limit allows employees to save for retirement with the benefit of tax-deferred growth on their investments until they withdraw the funds, typically during retirement when they may be in a lower tax bracket.

In addition, it's important to note that employees aged 50 and older can make additional catch-up contributions, which would also be part of the overall contribution considerations for retirement planning. Understanding these limits is essential for compliance and maximizing retirement savings potential.