Are 401k contribution limits prorated the year I retire?

[smakbagshaw]

Are 401k contribution limits prorated the year I retire?  If I work less than 12 months, does the 19,500 limit need to be prorated?

[macuser_22]

No.  The limit is for the year, not the time you work.

[DoninGA]

Also note - https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sha...

Catch-up contributions for those age 50 and over

If permitted by the 401(k) plan, participants age 50 or over at the end of the calendar year can also make catch-up contributions. You may contribute additional elective salary deferrals of:

• $6,500 in 2021 and 2020 and $6,000 in 2019 - 2015 to traditional and safe harbor 401(k) plans
   
• $3,000 in 2021 - 2015 to SIMPLE 401(k) plans
   
• These amounts are subject to cost-of-living PDF adjustments

You don’t need to be “behind” in your plan contributions in order to be eligible to make these additional elective deferrals.

[fanfare]

since contributions must be deducted from your paycheck, leaving early is a form of prorating.

But if your paycheck is large enough you may hit the limit on your first paycheck.