Essentially, taking advantage of matching contributions amounts to getting free money for your retirement. For example, say your employer offers a 5% match. If you make $100,000 and contribute $5,000 to your 401(k) in a year, your employer will provide a matching contribution of $5,000 ...
The IRS sets annual contribution limits on how much you can contribute. For 2025, the maximum amount that you can contribute to a 401(k) plan is $23,500, or $31,000 if you’re age 50 or older thanks to the $7,500catch-up contribution. This is an increase from 2024 when you coul...