How Much Can I Contribute to My 401(k)?

Saving for retirement through your 401(k) is a smart financial move. But how much can you actually contribute?

Each year, the IRS sets limits on how much you can contribute to your 401(k) through salary deferrals. For 2025:

• Employee elective deferral limit: $23,000

• Catch-up contribution (if age 50 or older): $7,500

• Total possible contribution (if eligible): $30,500

These limits apply to the total across all 401(k), 403(b), and similar plans you may participate in during the year.

Your employer can contribute as well, typically through matching or profit-sharing. The combined contribution limit from both employee and employer sources in 2025 is:

• Total annual additions limit: $69,000 (or $76,500 with catch-up)

• Increase your deferral percentage after raises or bonuses.

• Check if your employer offers automatic escalation.

• Use catch-up contributions once you turn 50.