Total 401(k) plan contributions by an employee and an employer cannot exceed $69,500 in 2025. Catch-up contributions bump the 2025 maximum to $77,000 for employees who are 50 to 60 and up to $81,250 for employees who are 60 to 63 . Total contributions cannot exceed 100% of an employee’s annual compensation.
2024 Limit | 2025 Limit | |
401(k) Employee & Employer Contributions | $69,000 | $69,500 |
Total with Catch-Up Contributions for those 50 to 60 | $76,500 | $77,00 |
Total with Catch Up Contributions for those 60 to 63 | No difference | $81,250 |
Many employers offer 401(k) matching contributions as part of their job benefits package. That means they agree to duplicate a portion of your contributions up to a set percentage of your salary. In addition, some employers may also share a percentage of their profits with employees in the form of non-matching contributions.
While an employer’s 401(k) matching and non-matching contributions don’t count toward your annual employee deductible contribution limits, they are capped by total contribution limits.
Vanguard data from 2022 show that among 401(k) plans the firm administered, 95% of employers provided matching or non-matching contributions to their employees. Approximately 69% of plans provided a 401(k) match to their employees. Another 10% provided non-matching 401(k) contributions. And 36% provided both types.
While the annual limits for individual contributions are cumulative across 401(k) plans, employer contribution limits are per plan. If you were to participate in multiple 401(k) plans in one calendar year (like in our example above, if you left one job and started a new position), each of your employers could max out their contributions.