401(k) Contribution Limit Calculator
Find out your maximum allowable 401(k) contribution for the year, including catch-up contributions if you're 50+, and see how much your employer match adds to your total. Great for annual benefits enrollment.
About this calculator
The IRS sets annual limits on how much you can contribute to a 401(k). For 2024, the employee elective deferral limit is $23,000; for 2025 it is $23,500. Workers aged 50 and older can make additional catch-up contributions of $7,500 per year, raising the 2024 limit to $30,500. Your actual contribution is the lesser of your elected percentage of salary or the IRS limit: Employee Contribution = min(salary × rate%, IRS limit + catch-up). Employer matching is calculated separately and typically matches 50%–100% of contributions up to 6% of salary: Employer Match = min(salary × employerMatch%, salary × 6%). The total shown here is your contribution plus employer match combined, but only your employee portion counts toward the elective deferral limit.
How to use
Assume age 52, $80,000 salary, 10% contribution rate, 3% employer match rate, tax year 2024. Step 1 — Your contribution: min($80,000 × 10%, $23,500 + $7,500) = min($8,000, $31,000) = $8,000. Step 2 — Employer match: min($80,000 × 3%, $80,000 × 6%) = min($2,400, $4,800) = $2,400. Step 3 — Total going into your 401(k): $8,000 + $2,400 = $10,400/year. To maximize the IRS limit, you would need to raise your contribution rate to at least 39.4% of your $80,000 salary.
Frequently asked questions
What is the 401(k) contribution limit for 2024 and 2025?
For 2024, the IRS employee elective deferral limit is $23,000, rising to $23,500 for 2025. Workers aged 50 and older can contribute an additional $7,500 catch-up amount in both years, bringing their totals to $30,500 (2024) and $31,000 (2025). The overall limit including employer contributions, profit sharing, and after-tax contributions is $69,000 in 2024 and $70,000 in 2025 (or 100% of compensation, whichever is less). These limits are adjusted annually by the IRS for inflation.
How does employer 401(k) matching work and how much free money am I leaving on the table?
Employer matching is effectively free compensation: your employer contributes a set amount to your 401(k) based on what you contribute, up to a cap. A common formula is 100% match on the first 3% of salary plus 50% on the next 2%, equating to a 4% employer contribution if you contribute at least 5%. Not contributing enough to capture the full match is widely regarded as one of the most costly retirement planning mistakes. For a $70,000 salary with a 4% full match, failing to contribute enough costs you $2,800/year in free money — and the compounded loss over 20 years at 7% growth exceeds $114,000.
Should I contribute to a traditional pre-tax 401(k) or a Roth 401(k)?
The choice depends primarily on whether you expect your tax rate to be higher now or in retirement. A traditional 401(k) lowers your taxable income today, which is valuable if you are currently in a high bracket. A Roth 401(k) uses after-tax dollars but grows tax-free, making it advantageous if you expect higher taxes in retirement or want tax-free income to manage Social Security taxation and Medicare IRMAA surcharges. Many advisors recommend younger or lower-income workers favor Roth, while higher earners near peak earnings lean toward traditional. Some plans allow splitting contributions between both types.