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How to Manage Taxes When Expanding Your Business
Discover strategies to manage taxes as your business grows—from choosing the right entity structure for your business to planning for multi-state...
The IRS recently updated 401(k) employee and employer contribution limits for 2025. EP Wealth shares these changes to help you grow your retirement savings in the year ahead. Reach out to find an advisor near you.
What Is the 401k Employer Contribution Limit for 2024?
At the start of each new year, it’s a smart idea to review your plan for retirement and get up to speed on any changes to annual contribution limits. The Internal Revenue Service sets the maximum amount you and your employer can contribute to your 401(k), and that number increases in 2025.
In 2025, the limit for employee salary deferrals for 401(k)s is $23,500 (up $500 from 2024.) Workers aged 50 years and older can also make catch-up contributions of up to $8,000. Employer contributions do not count toward these limits.
The total contribution limit for employers and employees combined is $70,000 or ($77,500 with the catch-up contribution.) The maximum amount your employer can contribute depends on the specific matching program for your 401(k).
Employer 401(k) Matching Programs
When it comes to different employer matching options, a partial 401(k) match is the most common.
With a partial match, the employer matches their employees’ contributions up to a certain percentage. Other employers match employee contributions dollar-for-dollar, usually up to a certain percentage of the employee’s salary.
It’s also possible for employers to provide non-matching contributions. That means the company contributes to an employee’s 401(k) regardless of whether the employee contributes or not.
Whichever matching program your employer offers, it’s we suggest to take advantage of their 401(k) plan. Otherwise, you may be missing out on “free money” and tax benefits that can help you put more away for retirement.
Prioritize Your Retirement Plan in 2025 with EP Wealth Advisors
Do you have questions about your 401(k)? Are you ready to start off the new year with a solid retirement planning strategy? EP Wealth is here to help.
We provide personalized retirement-planning solutions based on your immediate needs and your future goals. Connect online to reach an advisor near you.
DISCLOSURES:
- Information presented is general in nature and should not be viewed as a comprehensive analysis of the topics discussed. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions. Content does not involve the rendering of personalized investment advice nor is it intended to supplement professional individualized advice.
- Hiring a qualified advisor and/or financial planner does not guarantee investment success, and does not ensure that a client or prospective client will experience a higher level of performance or results. No guaranty or warranty is made that any direct or implied results or projections being represented here will be met or sustained.
- The need for a financial advisor or financial planner and/or the type of services required are specific to the uniqueness of each individual’s circumstances. There is no guarantee or warrantee that the services offered by EP Wealth Advisors, LLC will satisfy your specific financial services requirements. Services offered by other advisors may align more to your specific needs.
- All investment strategies have the potential for profit or loss. Different types of investments and investment strategies involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for a client's portfolio. The risk of loss can never be eliminated even if working with a professional.
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- Request an appointment with an EP Wealth Advisor when you have a minimum of $500,000 in investable assets – which includes qualified retirement plans (IRA, Roth IRA, 401(k), taxable brokerage, cash (savings/checking) and CDs. Investable assets do not include your home, vehicles, or collectibles.
- The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisors. Before making any decision or taking any action, you should consult with a professional tax advisor who has been provided with all pertinent facts relevant to your situation. EP Wealth Advisors is not in the business of providing legal or tax advice. Please consult with a CPA, tax professional, and/or attorney regarding your specific situation
