The Annual Contribution Limit refers to the maximum amount of money that an individual can contribute to certain types of accounts, such as retirement accounts (401k, IRA, etc.), Health Savings Accounts (HSAs), or education savings accounts (529 plans) in a given year.

These limits are typically set by governmental regulatory bodies such as the Internal Revenue Service (IRS) in the United States, and they can change from year to year based on inflation and changes to tax law. For example, the annual contribution limit for a 401(k) plan in the United States was $19,500 for individuals under 50, and $26,000 for individuals 50 and over (including a $6,500 catch-up contribution).

Exceeding these limits can result in tax penalties, so it’s important to monitor contributions to these types of accounts closely.