Saving for retirement helps you plan for the future & lower your tax bill
2025 CONTRIBUTION LIMITS
*subject to change depending on age and eligible income.
Annual contribution limits are calculated based on your age, income, and employer entity type.
Age
If you’re between ages 18 and 49, and your annual income is $350,000 or more, then your limits are equal to those reflected on the bar chart.
Between ages 50-59, then you could be eligible for an additional catch-up contribution of $7,500.
Between ages 60-63, you could be eligible for a super catch-up up to $11,250.
Income
If your eligible income is less than $350,000, your maximum Employer Contribution is equal to 25% of eligible income.
Individual contributions can be made up to 100% of eligible income.
With combined individual and employer contributions, total contributions also can’t exceed 100% of eligible income.
So, with all this talk about eligible income, what is it?
Employer Entity Type
S-Corp, LLC taxed as an S-Corp, or C-Corp —
Eligible income based on W-2 wages
Sole Prop or LLC taxed as a Sole Prop —
Eligible income based on Schedule C line 31 net profit
Partnership or LLC taxed as a Partnership —
Eligible income based on Schedule K-1 box 14A earnings
SELF-EMPLOYED AND NEED A 401(K) PLAN?
JUST 5 EASY STEPS:
1) Sign an adoption agreement/trust agreement
2) Fill out a deferral election form
3) Open your investment account with Fidelity (or any other financial institution)
4) Deposit money to the account up to the annual limit(s)
5) File a 5500 each year once your account value reaches $250k
FIRST THING’S FIRST
Lmk if anyone else works for your business (other than you, bestie!):
YES -> If you’re not the only person working for your business (i.e. you pay family members or have employees), click the Employee Info Form button to fill out the form in Google Sheets. Then, save it to your computer, and upload it back when submitting your proposal request form.
NO -> Just you? Love that. Skip right to the Proposal Request Form.