Once you retire, you’ll likely need to draw on a variety of financial sources - and one of the most important ones may be your 401(k).
In 2025, you can put even more money into your plan than ever.
The contribution limit has increased by $500, to $23,500.
If you’re 50 or older, you can contribute an additional $7,500, for a total of $31,000.
And if you are between 60 and 63, you have an even higher catch-up contribution — $11,250, for a total of $34,750.
Of course, if you’re a long way from retirement, you will likely have other financial considerations, such as paying off student loans or saving for your children’s college education, so you might not be able to “max out” your 401(k).
At a minimum, though, contribute enough to earn your employer’s match, if one is offered.
Regardless of how much you put into your 401(k), try to create an investment mix within your plan that matches your risk tolerance and time horizon.
Your 401(k) is a powerful retirement savings vehicle - so do what you can to get the most from it.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson and Hawes Dickerson. Members SIPC.
