401(k) Contribution Limits: How Much You Can Contribute in 2024 and 2025

The 2025 401(k) Contribution Limit

The most you can contribute to a 401(k) in 2025 is $23,500. If you are age 50 or older, you can add a $7,500 catch-up contribution, bringing your total to $31,000. These are the limits set by the IRS; they are the same for both traditional 401(k) and Roth 401(k) accounts, and they apply to your own salary deferrals before employer matching is added.

How the Limit Works

The limit applies per person, per plan. If you work for more than one employer, your total deferrals across all plans cannot exceed the annual cap. The limit is indexed to inflation and adjusted each year. For 2024, the limit was $23,000, with the same $7,500 catch-up provision for those 50 and older.

What Counts Toward the Limit

Only employee salary deferrals count against the limit. Employer matching contributions, employer profit-sharing contributions, and after-tax (non-Roth) elective deferrals that are converted to Roth do not count toward the $23,500 cap. However, the total of all contributions to a single plan — employee deferrals plus employer contributions — is subject to a separate overall cap, which was $69,000 in 2025, or $76,500 if you are 50 or older.

Roth vs. Traditional 401(k) Limits

There is no separate Roth contribution limit. The $23,500 limit covers the sum of your traditional and Roth 401(k) elective deferrals combined. You can split the limit between the two in any way you choose, as long as the total does not exceed the cap.

What Happens If You Over-Contribute

If you contribute more than the annual limit, the excess is taxed as ordinary income in the year it was made, and it may be subject to an additional 6% excise tax for each year the excess remains in the account. You must generally withdraw the excess or recharacterize it by April 15 of the following year to avoid the penalty.

Key 401(k) Contribution Limits at a Glance