The 401(k) contribution limit for 2025 is $23,500 for employees under 50. If you’re 50 or older, you can contribute up to $31,000 in 2025. The previous maximum contribution in 2024 was $23,000 for employees under age 50, and $30,500 for employees 50 or older.
These contribution limits can change year-to-year, but allow workers to save a bundle on taxes while maximizing their retirement savings. New provisions allow for a temporary increase in contributions to workers aged 60 to 63 — with some limitations.
Here’s how 401(k) contributions work, the new contribution limits for those nearing retirement and how you can maximize your 401(k) account.
2025 401(k) Contribution Limits Overview
Here’s the updated 401(k) contribution limits for 2025:
| Age | Employee Contribution Limit | Catch-up Contribution Limit | Employer Match Limit | Total Contribution Limit |
|---|---|---|---|---|
| Under 50 | $23,500 | Not eligible | $46,500 | $70,000 |
| 50 to 59 | $23,500 | $7,500 | $46,500 | $77,500 |
| 60 to 63 | $23,500 | $11,250 | $46,500 | $81,250 |
| 64 and up | $23,500 | $7,500 | $46,500 | $77,500 |
These limits were increased from 2024, when the total contribution limit was $23,000 for employees and $46,000 for employers, but the catch up contribution of $7,500 remains the same.
Did You Know?
In mid-2025, the Big Beautiful Bill passed and increased the catch-up contributions for individuals aged 60 to 63, allowing up to $11,250 in contributions under 2028.
New Enhanced Catch-Up Contributions for Ages 60 to 63
With the introduction of the Secure 2.0 Act, certain individuals can contribute even more to their 401(k) accounts starting in 2025. A provision in the bill allows workers aged 60 to 63 to contribute up to an additional $11,250 to their 401(k) accounts, for a total employee contribution limit of $34,750.
The exact language in the bill states that the contribution enhancement is the greater of $10,000 or 150% of the standard age 50 and up catch-up contribution limit. Since the catch-up contribution is $7,500 for the year 2025, this makes the “super catch-up” contribution amount to $11,250.
Employer Contributions and Combined Limits
In addition to the employee contribution limit of $23,500 plus any catch-up contributions, employers also have annual limits on how much they can contribute to your 401(k) plan. Many 401(k) plans offer employer matching funds, which match a certain percentage or amount that you contribute to your 401(k) plan.
But employers cannot contribute more than a maximum of 100% of your total compensation or the maximum combined limit of $70,000, plus catch-up contributions. The employee and employer combined contribution limit for those 50 to 59 and 64 and older is $77,500. However, if you’re between 60 and 63, it’s $81,250.
Maximizing Your 2025 401(k) Contributions
If you want to max out your 401(k) account there are a few steps you can take:
Automatic Investments up to the Maximum
If you can contribute up to $23,500 to a 401(k) account, you’ll need to set up automatic contributions to hit the maximum. If you start in January, this means contributing $1,958.33 per month, or around $903.84 per paycheck, if paid biweekly.
Catch-up, If Eligible
If you’re 50 or older, you can contribute an additional $7,500 per year, so make sure to account for that in your contributions.
If you’re age 60 to 63, you can contribute up to $11,250 extra, which is almost another $1,000 per month. Calculate what you need to contribute per paycheck to max it out.
Employee Match
Many employers offer matching funds in your 401(k), so at a minimum, make sure to invest enough to get your employer match. This is free and you should never pass up this benefit.
Mega Backdoor Roth IRA
Some employers allow you to make additional contributions to your 401(k) account.
While these contributions may be non-deductible, you might be able to roll them over into a Roth account — either 401(k) or IRA — allowing you to gain some future tax advantages.
Ask your employer if you can make non-deductible contributions to your 401(k) and rollover to a Roth account.
Contribution Limits for Highly Compensated Employees (HCEs)
With the 401(k) tax advantages, there’s the potential for employees with higher incomes to benefit more from deferring taxes. The IRS defines HCEs as:
- Individuals who made more than $160,000 in 2025.
- Individuals who owned more than 5% of the business at any time during the previous year.
- Individuals who were in the top 20% of employees when ranked by compensation — this measurement is optional for employers.
What this means for you:
- If your salary puts you in HCE territory, you might face additional restrictions on how much you can contribute.
- Plan administrators may issue refunds if your deferrals exceed what’s allowed by the nondiscrimination tests.
- Some HCEs turn to nonqualified deferred compensation plans or other vehicles to save more when 401(k) limits hold them back.
To ensure everyone is treated fairly, employers must conduct tests, like Actual Deferral Percentage (ADP) and the Actual Contribution Percentage (ACP) tests, to make sure that they’re compliant.
If a highly compensated employee has exceeded the 401(k) contribution limits, the employer can either refund the excess contributions or pay a 10% excise tax. Employers have two and a half months to complete either option.
Maximizing Your Retirement as an HCE
Even as a HCE, there are still ways to maximize your retirement savings.
If your plan allows it, you can make after-tax contributions to your 401(k) and then roll them into a Roth IRA or backdoor Roth account.
You might also consider contributing to a backdoor Roth IRA or Health Savings Account (HSA) to take advantage of other tax benefits.
What’s Changed from 2024 to 2025
There are several minor increases in contribution limits from 2024 to 2025, as well as a major increase for older workers on the cusp of retirement. Here are a few changes of note for 401(k) accounts between 2024 and 2025:
- Employee contribution limit: $23,500 — up from $23,000 in 2024
- Employer contribution limit: $46,500 — up from $46,000 in 2024
- Catch-up contributions, ages 60 to 63: $11,250 — up from $7,500 in 2024
- Total contribution limit:
- Under 50: $70,000 — unchanged
- Ages 50 and up: $77,500
- Ages 60 to 63: $81,250 — up from $77,500 in 2024
401(k) Contribution Limits FAQ
Here are the answers to some of the most frequently asked questions about 401(k) contribution limits for 2025:- Can I contribute to both traditional and Roth 401(k)?
- Yes, you can technically contribute to both a traditional and Roth 401(k). In fact, you can contribute to a traditional 401(k), and have your employer matching contributions go into a Roth 401(k). The maximum contribution limits are still the same, even if your contributions are split between traditional and Roth accounts.
- What happens if I contribute too much?
- You could face tax consequences, including having the excess amount taxed twice -- once for the year it's contributed and again when withdrawn. Employers usually refund any overage, but it's wise to track your contributions carefully to avoid headaches.
- How do multiple employers affect limits?
- As an employee, you can only contribute up to the maximum individual 401(k) contribution limits — $23,500 for those under age 50 — no matter how many jobs you have. But each employer, if unrelated businesses, can contribute up to the maximum amount allowed by law for each plan.
- When is the contribution deadline?
- You must contribute to your 401(k) by the end of the calendar year, December 31. But your employer contributions and matching funds can be deposited as late as the tax filing deadline for the year, including extensions.