The maximum pre-tax contribution dollar amount is set by law and adjusted for inflation annually.Try to contribute at least enough to qualify for your company’s maximum matching contribution. By not contributing the company’s maximum matching contribution you are leaving money on the table. Ask your Human Resource department how much you need to contribute in order to get the best match.
However, given the plans’ valuable tax breaks, it makes sense to invest the maximum if you can. There are annual limits. In 2014, if you are under 50 years old, you can contribute a maximum of $17,500. If you’re 50 or older, you can make an additional catch-up contribution of as much as $5,500, for a total of up to $23,000.