FAQ

What is the 401(k) contribution limit for employees in 2025?

The 401(k) contribution limit for employees in 2025 is $23,500, up from $23,000 in 2024.

What is the employer contribution limit for 2025?

The employer contribution limit for 2025 has also increased, rising to $46,500.

What is the combined employee and employer 401(k) contribution limit for 2025?

The combined employee and employer 401(k) contribution limit for 2025 is $70,000.

What is the catch-up contribution limit for employees aged 50 and older in 2025?

The catch-up contribution limit for employees aged 50 and older in 2025 remains at $7,500.

Is there an increased catch-up contribution limit for employees aged 60 to 63 in 2025?

Starting in 2025, employees aged 60 to 63 will benefit from an increased catch-up contribution limit of $11,250, rather than the standard $7,500.

Conclusion

Maximizing your 401(k) contributions each year is a crucial step towards building a secure retirement. With the increase in contribution limits for 2025, it’s important to take advantage of these opportunities to save for the future. Additionally, building a taxable investment portfolio and diversifying your investments beyond your 401(k) can further strengthen your financial position. By setting clear goals and working towards them consistently, you can secure a more comfortable retirement and financial future.