Sara, a higher wage earner, is age 38 and wants to make the maximum contribution to her 401(k)-type plan for the year 2025, including after-tax contributions with which she plans to execute a mega-back door Roth conversion.

Keep in mind that some companies put their own dollar limit on after-tax contributions, and many don’t even have an after-tax contribution option much less help facilitate a mega-back door Roth conversion. Read your company’s 401(k)-type plan literature to be sure.

Sara’s company offers a generous match of $15,000 when maxing out regular contributions and no set limit on after-tax contributions. How much can she contribute to her 401(k)-type plan using the maximums for the tax year 2025?

Maximum 401(k) Contribution for 2025

Since Sara’s employer had no set limit on after-tax contributions, it was computed by subtracting her regular contributions and company match from the 2025 maximum of $70,000 (70,000-23,500-15,000=31,500).

Employees of Sara’s company age 50 and older can save even more tax-advantaged money. They enjoy an extra $7,500 catch-up contribution.

Savers age 60-63 can save even more with the enhanced catch-up contribution starting in 2025.

Those high contribution limits might seem like more than enough per year, especially if you’re on the younger side and dedicating parts of your most important money to financial goals other than retirement. On the other hand, if you’re striving to become financially independent, want to retire early, or you’re approaching retirement and are a little behind, those high maximums can be a godsend.