What Does it Mean to Max Out Your 401(k)?
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What Does it Mean to Max Out Your 401(k)?
To max out your 401(k) is to put in the maximum amount of money each year that the Federal government allows. This amount for 2025 is $23,500 and if you are 50-59 or over age 64, you can contribute an additional $7,500 for a total of $31,000. If you are between the ages of 60 and 63, you are eligible to contribute an additional $11,250 as the catch-up contribution. For participants of 403(b) plans, you may also be eligible for an additional $3,000 catch-up after 15 years of service at your employer.
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