401k & Roth IRA Contribution Limits for 2025

Employees can now defer up to $23.5K into a 401k ($31k for those 50+) which can be spread across a Traditional 401k and Roth 401k. Those aged 60-63 can do a 401k catch-up of $11,250 ($34,750 total), something that is new apparently.

Roth 401k is criminally underutilized especially by young folks who are in a lower tax bracket and can get that tax burden out of the way early. Then, you can grow that Roth 401k tax free for decades.

Total 401k contributions allowed, pre-and-post tax, by employers and employees are now $70K (2025).

Individual Retirement Account (IRA) limits are $7K ($8K for 50+) which includes both a Traditional IRA and a Roth IRA.