The 2025 401(k) contribution limit is $23,500 ($31,000 if 50+). See your projected balance, employer match value, and whether you're on track for retirement.
📋 Educational tool only. Not financial, tax, or investment advice. Consult a qualified financial planner.
Projected at 65
$2,504,453
Total Employer Match
$9,190
Free money from employer
Income Replacement
105%
Target: 80%+ of current salary
Your Total Contributions
$569,025
Lifetime Tax Savings
$155,202
Annual at 4% Rule
$100,178
Monthly at 4% Rule
$8,348
Age 30
$45,000
Age 35
$125,927
Age 40
$249,435
Age 45
$434,260
Age 50
$706,932
Age 55
$1,104,954
Age 60
$1,681,270
Age 65
$2,504,453
Felix connects this to your full retirement picture including any IRAs, HSA, and taxable accounts — and tells you if you're on track.
See Your Full Retirement Plan — Free| Limit Type | 2025 | Notes |
|---|---|---|
| Employee Contribution | $23,500 | Pre-tax or Roth 401(k) |
| Catch-Up (50+) | $7,500 | Additional above standard limit |
| Total Employee (50+) | $31,000 | Standard + catch-up |
| Total (incl. Employer) | $70,000 | All contributions combined |
Most employers now offer both Traditional and Roth 401(k) options. Traditional 401(k) contributions are pre-tax — they reduce your taxable income now, but withdrawals in retirement are taxed as ordinary income. Roth 401(k) contributions are after-tax — no deduction now, but all withdrawals in retirement are completely tax-free. The same $23,500 limit applies whether you choose Traditional, Roth, or a split.
The most painless way to reach the maximum contribution: increase your contribution rate by 1% every time you get a raise. You never feel the difference because the raise absorbs the increase. Most 401(k) plans allow you to set this up as an automatic annual escalation.
Your own contributions are always 100% yours immediately. Employer matching contributions may be subject to a vesting schedule. Cliff vesting gives you 0% until a specified date (usually 3 years), then 100%. Graded vesting increases your ownership gradually (e.g., 20% per year over 5 years). Check your plan details before assuming you own your full match.
The IRS 401(k) employee contribution limit is $23,500 for 2025. Workers aged 50 and over can make an additional catch-up contribution of $7,500, for a total of $31,000. The total combined limit including employer contributions is $70,000 for 2025. Always contribute at least enough to capture your full employer match before contributing to an IRA — the employer match is the highest guaranteed return available in personal finance.
Many employers match your 401(k) contributions up to a percentage of your salary — commonly 3-6%. For example, a 100% match up to 4% means if you contribute 4% of your $100,000 salary ($4,000), your employer adds another $4,000. That's a 100% instant return. Not taking the full match is the single most expensive financial mistake most Americans make.
A Roth 401(k) allows after-tax contributions with tax-free withdrawals in retirement — combining Roth tax treatment with the higher 401(k) contribution limit ($23,500 vs Roth IRA's $7,000). The same contribution limit applies whether you choose Traditional or Roth 401(k), and you can split between both. Most employers now offer this option.
Your own 401(k) contributions are always 100% yours. However, employer matching contributions may be subject to a vesting schedule — cliff vesting (0% until a date, then 100%) or graded vesting (e.g., 20% per year over 5 years). If you leave before fully vested, you forfeit the unvested employer portion. Check your plan documents.
Felix coordinates your 401(k), IRA, HSA, and taxable accounts into one unified retirement plan. Free download.
Download Richify — FreeThe IRS 401(k) employee contribution limit is $23,500 for 2025. Workers aged 50 and over can make an additional catch-up contribution of $7,500, for a total of $31,000. The total combined limit including employer contributions is $70,000 for 2025. Always contribute at least enough to capture your full employer match before contributing to an IRA — the employer match is the highest guaranteed return available in personal finance.
Many employers match your 401(k) contributions up to a percentage of your salary — commonly 3-6%. For example, a 100% match up to 4% means if you contribute 4% of your $100,000 salary ($4,000), your employer adds another $4,000. That's a 100% instant return. Not taking the full match is the single most expensive financial mistake most Americans make.
A Roth 401(k) allows after-tax contributions with tax-free withdrawals in retirement — combining Roth tax treatment with the higher 401(k) contribution limit ($23,500 vs Roth IRA's $7,000). The same contribution limit applies whether you choose Traditional or Roth 401(k), and you can split between both. Most employers now offer this option.
Your own 401(k) contributions are always 100% yours. However, employer matching contributions may be subject to a vesting schedule — cliff vesting (0% until a date, then 100%) or graded vesting (e.g., 20% per year over 5 years). If you leave before fully vested, you forfeit the unvested employer portion. Check your plan documents.