What is the 401(k) employee contribution limit for 2025, and what additional contribution is available for workers aged 50 and older?

For 2025, the 401(k) employee elective deferral limit is $23,500, up from $23,000 in 2024. Workers aged 50 and older can contribute an additional $7,500 as a catch-up contribution, for a total of $31,000. SECURE 2.0 Act introduced a new enhanced catch-up for workers aged specifically 60 to 63, allowing an additional $11,250 instead of the standard $7,500, for a total of $34,750. Contributions to a traditional 401(k) reduce your taxable income in the year they are made, though Roth 401(k) contributions are made after tax with tax-free growth and withdrawals in retirement.