Annual Contribution
$10,000
Employer Match
$3,000
Projected Balance at Retirement
$1,227,990
What is the 401(k) contribution limit for 2025?
For 2025, the employee elective deferral limit is $23,500. If you are age 50 or older, you can make an additional catch-up contribution of $7,500, bringing the total to $31,000. The total combined employee and employer contribution limit is $70,000.
What is the enhanced catch-up contribution for ages 60-63?
Starting in 2025 under SECURE 2.0, participants aged 60 through 63 can make an enhanced catch-up contribution of $11,250 instead of the standard $7,500 catch-up, bringing their total elective deferral limit to $34,750.
How does employer matching work?
Many employers match a percentage of your contributions up to a certain limit. For example, an employer might match 50% of your contributions up to 6% of your salary. This is essentially free money and you should aim to contribute at least enough to get the full employer match.
What are the tax benefits of a 401(k)?
Traditional 401(k) contributions are made pre-tax, which reduces your taxable income for the year. You will not pay income tax on the contributions or their earnings until you withdraw the money in retirement. This can result in significant tax savings, especially if you are in a high tax bracket.
IRS-Aligned: This calculator uses official IRS contribution limits and tax brackets for the 2025 tax year. Results are indicative -- for complex situations, consult a qualified financial advisor.
Disclaimer: This calculator provides estimates based on current IRS rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your filing status, state of residence, deductions, and individual circumstances. Always consult a qualified tax professional or CPA before making financial decisions. Read our terms
This calculator uses official rates and thresholds from:
- IRS Publication 560 — Retirement Plans for Small Business
- IRS 401(k) Contribution Limits
- IRS Publication 525 — Taxable and Nontaxable Income
Last verified: March 2026 · Tax year 2025. Results are indicative — consult a qualified accountant for personalised advice.