| Traditional 401(k) | Roth 401(k) | |
|---|---|---|
| Taxes | You make pre-tax contributions and pay tax on withdrawals in retirement. | You make after-tax contributions and don’t pay tax on qualified withdrawals in retirement. |
| Salary deferral limits |
2024: $23,000 ($30,500 if you’re age 50 or older) 2025: $23,500 ($31,000 if you’re age 50 or older). Beginning this year, employees age 60-63 can save up to $34,750 ($23,500 + $11,250) because of the Super Catch-Up contribution.
|
2024: $23,000 ($30,500 if you’re age 50 or older) 2025: $23,500 ($31,000 if you’re age 50 or older). Beginning this year, employees age 60-63 can save up to $34,750 ($23,500 + $11,250) because of the Super Catch-Up contribution.
|
| Total contribution limits (includes salary deferral amount and employer contributions) |
2024: $69,000 (For those over 50, the catch-up contribution limit is $7.500.) 2025: $70,000 (For those over 50, catch-up contributions are subject to their own $7,500/$11,250 limit based on your age.)
|
2024: $69,000 (For those over 50, the catch-up contribution limit is $7.500.) 2025: $70,000 (For those over 50, catch-up contributions are subject to their own $7,500/$11,250 limit based on your age.)
|
| RMDs | You must take RMDs starting at age 73. | There is no requirement to take RMDs during the participant’s lifetime. |
Disclosure Title
Source: Schwab Center for Financial Research