401k Contribution Limits: What You Can Save in 2025
Written by
Jacob Wade
Edited by
Joe Evans
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If you’re saving for retirement, understanding the 401(k) contribution limits for 2025 is key. The IRS raised the cap again this year, which means you can put away more money tax-deferred — or even tax-free if you use a Roth 401(k).
For 2025, workers under 50 can save up to $23,500, while those 50 and older can stash away $31,000 with catch-up contributions. And if you’re between ages 60 and 63, new “super catch-up” rules let you contribute as much as $34,750.
Why does this matter? Because every dollar you save now compounds over time and can mean thousands more in retirement.
What Are 401(k) Contribution Limits?
The IRS sets these limits each year to balance retirement savings with tax policy.
- Employee contributions come straight from your paycheck.
- Employer contributions include matches and profit sharing.
- Combined contributions (yours + your employer’s) are capped annually.
According to 2022 U.S. Bureau of Labor Statistics data, 68% of private-sector workers had access to a 401(k) or similar plan, but only 52% participated. That makes knowing — and using — your limits even more important.
401(k) Contribution Limits: 2024 vs. 2025
| Age Group | 2024 Limit | 2025 Limit | Change |
|---|---|---|---|
| Under 50 | $23,000 | $23,500 | +$500 |
| 50-59 | $30,500 (includes $7,500 catch-up) | $31,000 (includes $7,500 catch-up) | +$500 |
| 60-63 | $30,500 (includes $7,500 catch-up) | $34,750 (includes $11,250 super catch-up) | +$4,250 |
| 64+ | $30,500 (includes $7,500 catch-up) | $31,000 (includes $7,500 catch-up) | +$500 |
| Employer Contribution Cap | $46,000 | $46,500 | +$500 |
| Total Max (Employee + Employer) | Up to $77,500 | Up to $81,250 (for ages 60-63) | Higher potential savings |
What Changed from 2024 to 2025
- Employee limit: $23,500 (up from $23,000)
- Employer contribution cap: $46,500 (up from $46,000)
- Super catch-up for 60-63: $11,250 (up from $7,500)
- Overall total: Up to $81,250 for some older workers
Quick Takeaway: The biggest change is for savers aged 60 to 63, who now get access to the new “super catch-up” contribution of $11,250, raising their potential annual savings to $34,750 from employee contributions alone.
Catch-Up Contributions for Age 50+
Once you turn 50, you’re eligible to save even more:
- Ages 50-59: Standard catch-up of $7,500.
- Ages 60-63: Super catch-up of $11,250 under the SECURE 2.0 Act.
- Ages 64+: Back to the $7,500 catch-up cap.
Fidelity reports the average 401(k) balance for savers in their 60s is $232,710 — not nearly enough for most retirements. Using catch-up contributions can help close that gap.
SIMPLE 401(k) Contribution Limits
For small businesses using SIMPLE 401ks, the 2025 limits are lower:
- Employee contribution: $17,000
- Catch-up (50+): $3,500
- Total max: $23,000-$26,500, depending on age
401(k) vs. IRA Contribution Limits for 2025
| Account Type | Under Age 50 | Age 50+ (Catch-Up) | Special Rule | Total Potential |
|---|---|---|---|---|
| 401(k) | $23,500 | $31,000 (includes $7,500 catch-up) | Ages 60-63 get a “super catch-up” of $11,250, raising the employee total to $34,750 | With employer match, total contributions can reach $70,000-$81,250 |
| Traditional IRA | $7,000 | $8,000 (includes $1,000 catch-up) | No special 60-63 rule | Max: $8,000 |
| Roth IRA | $7,000 (income limits apply) | $8,000 (includes $1,000 catch-up) | Income eligibility phases out at higher earnings | Max: $8,000 |
Quick Takeaway: A 401(k) allows you to save 3 to 4 times more each year than an IRA. If your employer offers matching contributions, the gap grows even wider, with the potential to stash away over $80,000 annually if you’re between the ages of 60 and 63.
Vanguard found that just 14% of participants max out their 401(k) each year, but those who do often have significantly higher retirement balances.
Strategies To Maximize Your 401(k) in 2025
- Automate your savings: To hit $23,500, contribute about $1,958 per month or $903 per biweekly paycheck.
- Always grab the employer match: Roughly 80% of companies offer a 401(k) match, and skipping it is like leaving free money on the table.
- Use catch-ups wisely: If you’re 50+, maxing catch-ups could add hundreds of thousands by retirement.
- Ask about Roth options: A Roth 401(k) grows tax-free, offering flexibility later.
- Consider after-tax contributions: Some plans allow “mega backdoor Roth” moves for even more savings.
Example: How Maxing Out Builds Wealth
- Age 40, contributing $23,500 annually: With 7% returns, you could have nearly $1.6 million by age 67.
- Age 55, adding $31,000 annually with catch-up: Over 12 years, that’s about $575,000 more saved for retirement.
- Age 62, using $34,750 super catch-up: Just 5 years of maxing out could grow to $200,000 more by retirement.
The Employee Benefit Research Institute estimates that 40% of U.S. households are at risk of not covering basic expenses in retirement. Maxing your 401(k) can reduce that risk.
Final Take to GO: Why Staying on Top of 401(k) Limits Matters
The IRS’s 2025 401(k) contribution limits give workers more ways to supercharge retirement savings — especially if you’re in your 50s or early 60s. Whether you’re chasing employer matches, using catch-ups or considering a Roth option, the key is to use every dollar of tax-advantaged space you can.
Start by checking how much you’re contributing now. Then, run the numbers with the GoBankingRates retirement calculator to see how close you are to your long-term goal.
401(k) Contribution Limits FAQ
Here are the answers to some of the most frequently asked questions about 401(k) contribution limits for 2025 and 2026:- What is the 401(k) contribution limit for 2025?
- $23,500 for workers under 50. $31,000 for ages 50+. $34,750 for ages 60–63.
- What’s the maximum employer contribution?
- Employers can contribute up to $46,500 in 2025, but the combined cap tops out at $81,250 for certain age groups.
- Can I contribute to both a 401(k) and an IRA?
- Yes. In 2025, you can contribute up to $7,500 ($8,500 if 50+) to an IRA in addition to your 401(k).
- Do Roth 401(k) limits differ?
- No, Roth and traditional 401(k)s share the same contribution limits. The difference is in tax treatment.
- How do SIMPLE 401(k) limits compare?
- Lower: $17,000 plus a $3,500 catch-up, with a max of $26,500.
Information is accurate as of Sept. 30, 2025.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
- U.S. Bureau of Labor Statics "Retirement plans for workers in private industry and state and local government in 2022"
- IRS.gov "401(k) limit increases to $23,500 for 2025, IRA limit remains $7,000"
- Fidelity "How do your retirement savings stack up?"
- Vanguard "How America Saves 2025"
- CNBC "A 401(k) match is like free money — here’s how it works"
- Employee Benefits Research Institute "Spending in Retirement: By the Numbers (2022)"
