Reminder: Increase Your 401(k) Contributions for 2025

We’re already a month into 2025, but if you haven’t adjusted your 401(k) contributions yet, don’t worry—it’s not too late! Every year, the IRS adjusts contribution limits to keep up with inflation, giving you the chance to stash away more for retirement. Whether you’ve been meaning to update your contributions or just need a little nudge, consider this your reminder to take action now and maximize your savings for the year ahead.

The 2025 Employee 401(k) Contribution Limits

Your 401(k) is one of the best tools for securing a comfortable retirement, and now you can save even more. In 2024, the contribution limit was 3,000, but in 2025, the IRS has increased it to 3,500. That’s an extra $500 you can put toward your future, tax-deferred.

If you want to take full advantage of this bump, all you need to do is increase your monthly contributions by $41.66. That’s about the cost of one takeout meal per month—an easy trade for a more secure retirement.

Remember, this limit applies across all your 401(k) accounts. So, if you’re working multiple jobs with separate 401(k) plans, be sure to keep track and not exceed the total contribution cap.

The 2025 Employee 401(k) Catch-Up Contribution Limits

For those aged 50 and older, there’s more good news. The catch-up contribution remains at $7,500, just like in 2024.

That means if you’re eligible, you can contribute a total of $31,000 to your 401(k) in 2025. If you want to max out this opportunity, you should aim to set aside about ,583 per month or ,291.50 per biweekly paycheck.

Even if you haven’t been saving aggressively up to this point, this extra allowance gives you a great chance to accelerate your retirement savings.

The 2025 401(k) Limit for Employer Contributions

Employer contributions are another key piece of the retirement puzzle. Many employers offer matching contributions—free money for your future.

In 2024, the total 401(k) contribution limit (which includes both your personal contributions and employer matches) was $69,000. In 2025, that number has increased to $71,000.

For those 50 and older, with catch-up contributions factored in, the total possible contribution jumps to $78,500.

If your employer offers a match, be sure to contribute at least enough to take full advantage of it. It’s essentially part of your salary—don’t leave money on the table.

It’s Not Too Late to Maximize Your 2025 Contributions

If you haven’t adjusted your contributions yet, now is the perfect time. Even small increases can make a big difference over time, thanks to compounding growth. Whether you set aside an extra $41.66 per month or go all in to max out your savings, your future self will thank you.

Log into your 401(k) provider’s portal or check with your HR department today to make the change. Your retirement goals are within reach—make 2025 a year of smart financial decisions!