Question 1

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

Accepted Answer

The 2025 IRS 401(k) contribution limit is $23,000 for employees under age 50. If you're age 50 or older, you can contribute an additional $7,500 as a catch-up contribution, bringing your total limit to $30,500. These limits apply to your employee contributions only and do not include employer match contributions.

Question 2

How do I calculate my 401(k) contribution?

Accepted Answer

To calculate your 401(k) contribution, multiply your base salary by your contribution percentage. For example, if you earn $80,000 and contribute 6%, your annual contribution is $4,800. You can also contribute a flat dollar amount. Use our free 401(k) match calculator to see your contribution amount and check it against IRS limits.

Question 3

What percentage should I contribute to my 401(k)?

Accepted Answer

Financial experts typically recommend contributing at least enough to get your full employer match (often 3-6% of salary), then aim for 10-15% of your income for retirement savings. However, the ideal percentage depends on your age, income, retirement goals, and other financial obligations. Use our calculator to see how different contribution percentages affect your annual savings.

Question 4

Does employer match count toward the 401(k) contribution limit?

Accepted Answer

No, employer match contributions do not count toward your $23,000 employee contribution limit. The IRS has a separate combined limit (employee + employer contributions) of $69,000 for 2025 ($76,500 with catch-up contributions). Your employer match is in addition to your personal contribution limit.

Question 5

What is a 401(k) catch-up contribution?

Accepted Answer

A 401(k) catch-up contribution is an additional contribution allowed for employees age 50 or older. In 2025, the catch-up amount is $7,500, which is added to the standard $23,000 limit, allowing those 50+ to contribute up to $30,500 total. This helps older workers boost their retirement savings as they approach retirement age.

Question 6

Can I contribute more than the 401(k) limit?

Accepted Answer

No, you cannot contribute more than the IRS 401(k) limit. If you exceed the limit, your plan administrator must return the excess contributions to you, and you may face tax penalties. The 2025 limit is $23,000 (or $30,500 if age 50+). Use our calculator to ensure your planned contribution stays within IRS limits.

Question 7

How much should I contribute to my 401(k) to maximize employer match?

Accepted Answer

To maximize your employer match, contribute at least the percentage required to get the full match. Common employer match formulas are 50% of contributions up to 6% of salary, or 100% of contributions up to 3-4% of salary. Check your plan documents for your specific match formula, then contribute enough to get the full employer match - it's free money for your retirement.

Question 8

What happens if I contribute too much to my 401(k)?

Accepted Answer

If you contribute more than the IRS 401(k) limit ($23,000 or $30,500 with catch-up), your plan administrator must return the excess contributions to you by April 15 of the following year. You'll also need to pay income tax on the excess amount, and if not corrected in time, you may face a 10% early withdrawal penalty. Our calculator helps you avoid this by showing when your contribution exceeds the limit.

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