Finance Maxxing
Retirement Accounts
401(k) / 403(b) / 457(b)
Employer-sponsored retirement plans with tax-deferred growth.
Employer-sponsored defined contribution plans allow pre-tax or Roth contributions with tax-deferred growth.
2025 Contribution Limits
| Limit | Under 50 | Age 50+ | Age 60–63 |
|---|---|---|---|
| Employee elective deferral | $23,500 | $31,000 | $34,750 |
| Total (employee + employer) | $70,000 | $77,500 | $81,250 |
Traditional vs. Roth 401(k)
| Traditional | Roth | |
|---|---|---|
| Tax on contribution | Deductible (pre-tax) | After-tax |
| Tax on growth | Deferred | Tax-free |
| Tax on withdrawal | Ordinary income | Tax-free |
| RMDs required | Yes (age 73) | Yes (but can roll to Roth IRA) |
| Best when | High tax rate now | Lower tax rate now |
Employer Match
Employer matching contributions:
- Do not count toward the $23,500 employee limit
- Are always pre-tax (even if you contribute Roth)
- Vest according to the plan's vesting schedule
- Count toward the $70,000 total annual limit
Always contribute enough to get the full employer match — it's an immediate 50–100% return on your money.
Sources
More in Retirement Accounts
Traditional IRA
Tax-deductible contributions with tax-deferred growth.
Roth IRA
After-tax contributions with tax-free growth and withdrawals.
Health Savings Account (HSA)
Triple tax-advantaged: deductible, tax-free growth, tax-free withdrawals.
Traditional vs. Roth
Pre-tax now vs. tax-free later — depends on future tax rate.
Roth Conversion
Moving pre-tax retirement assets into a Roth account.
Required Minimum Distributions (RMDs)
Mandatory annual withdrawals from pre-tax retirement accounts.
529 College Savings Plan
Tax-free growth for education expenses; state deductions may apply.