401(k) Contribution Limits for 2025
The IRS updates the 401(k) contribution limits every year — see the maximum amount you can add to your account in 2025.
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
In 2025, the 401(k) contribution limit is $23,500, with the catch-up contribution for most people age 50 and over being $7,500.
New in 2025, individuals age 60 to 63 can contribute an extra $11,250 toward their 401(k) instead of $7,500.
While you can make contributions to a 401(k) during every paycheck, the last day to make a 401(k) contribution for that tax year is December 31st.
The 401(k) plan is a fundamental retirement planning tool for many Americans, but there is a limit to how much can be contributed every year. The IRS sets yearly maximums based on the pace of inflation, and exceeding them can result in penalties if not addressed.
401(k) contribution limits 2025
The 401(k) contribution limit is $23,500. Those 50 and older can contribute an additional $7,500 as a catch-up for a total of $31,000. New in 2025, people ages 60, 61, 62 and 63 can make larger catch-up contributions of up to $11,250, for a total of $34,750.
Employers can also contribute to an employee's 401(k) account. Employer contributions don't count toward the employee's individual contribution limits, but there is a cap on the combined employee-employer total. In 2025, that number ranges from $70,000 to $77,500, depending on the employee's age.
2025 401(k) contribution limit | Catch-up contribution limit | Maximum employer contribution | Total maximum 401(k) contribution | |
|---|---|---|---|---|
Under the age of 50 | $23,500. | Not eligible. | $46,500. | $70,000.* |
Ages 50 to 59 | $23,500. | $7,500. | $46,500. | $77,500.* |
Ages 60 to 63 | $23,500. | $11,250. | $46,500. | $81,250.* |
Age 64 and older | $23,500. | $7,500. | $46,500. | $77,500.* |
*or 100% of employee compensation, whichever is less. | ||||
Roth 401(k) contribution limits
The contribution limits for a Roth 401(k) plan are the same as with a traditional 401(k). If you have access to both accounts, you can contribute to each one as long as your cumulative contributions don't exceed the maximum 401(k) contribution limit.
After-tax 401(k) contribution limits
If you've maxed out your 401(k) contribution for the year as an individual, but your employer's contributions haven't met the combined limit, you may be able to make an after-tax 401(k) contribution. This will depend on your employer's plan provider.
After-tax contributions to a 401(k) plan refer to additional contributions employees can make after reaching their pre-tax or Roth contribution limits. Unlike pre-tax contributions, after-tax contributions do not reduce your taxable income in the year they are made, but they can still grow tax-deferred.
Additionally, they can be part of a mega backdoor Roth conversion, where these after-tax contributions are rolled into a Roth IRA, allowing future earnings to grow tax-free and providing tax-free withdrawals in retirement
» Learn more: A deep dive into after-tax 401(k) contributions
401(k) max contribution limits for highly compensated employees
People who earn a high salary may be classified as highly compensated employees (HCEs) by the IRS. An employee is considered an HCE if they pass one of the tests below:
Ownership test. A person who owns more than 5% of the company, regardless of compensation.
Compensation test. A person who was in the company's top 20% of pay and received over a set number in compensation. For 2025, that number is $160,000.
To ensure that HCEs don't benefit disproportionately to non-HCEs, the IRS requires nondiscrimination testing for all 401(k) plans. The two key tests are the Actual Deferral Percentage (ADP) test, which compares salary deferral rates between the two groups, and the Actual Contribution Percentage (ACP) test, which focuses on employer matching and after-tax contributions.
If the test determines that people across compensation levels aren't participating in a manner the IRS deems proportionate, employee contribution levels for HCEs can be lowered. In these cases, your employer may need to return some of your excess contributions.
What happens if I exceed my 401(k) limit by mistake?
If you contribute too much to your 401(k) and notice your mistake before the tax filing deadline, you can probably correct it with your employer. You’ll need to notify your plan administrator. If your plan allows excess deferral distributions, the plan administrator will return the money and any earnings to you and file a 1099-R for the year the excess contribution was distributed.
If you don’t catch the mistake before the deadline, you may have to pay taxes twice on the amount you contributed over the limit. That’s because 1) the excess contribution is taxable in the year it was made and 2) the IRS will still count that money as taxable in the year it’s distributed. Any earnings are also taxable in the year they are distributed, the agency says.
» Looking to cash out? Learn the 401(k) withdrawal rules
On this page
On this page
