Short answer: how much you should contribute to your 401(k) depends on your income, employer match, retirement goals, and where you are in life. A practical starting point is to aim for at least enough to receive any employer match, and then work toward saving a substantial portion of your income over time. Here’s a structured way to think about it. What to contribute now

• If you have an employer match: contribute at least enough to get the full match. Matches are effectively free money and accelerate your retirement savings.
• If you don’t have a match: set a target based on your retirement timeline and comfort level with investing risk.

Federal contribution limits (2025)

• Employee deferral limit: up to $23,500 per year.
• Catch-up (age 50+): an additional $7,500, bringing potential contributions to $31,000 for those eligible, depending on plan rules.
• Combined employee plus employer contribution limit: up to $70,000 ($34,750 catch-up for those age 60-63 under certain rules, if plan allows).

Guiding rules of thumb

• 10-15% of gross income as a baseline savings rate for many workers, including any employer match, with adjustments for age, income, and other retirement assets.
• If starting later in your career, higher contributions may be necessary to reach a comfortable retirement nest egg.
• If you’re earlier in your career, a lower percentage can still compound meaningfully due to time in the market; you can gradually increase contributions over time (especially when income rises).

Personal planning steps

• Determine your current retirement target: desired annual retirement spending, expected Social Security, pensions, other savings.
• Calculate how much you’ll need to save: a common approach is to estimate retirement spending in today’s dollars and assume a safe withdrawal rate (e.g., 4% rule) adjusted for personal risk tolerance and longevity.
• Consider your employer match details: what percentage and up to what salary amount? This affects the optimal contribution level.
• Review investment allocation within the 401(k): ensure it matches your risk tolerance and time horizon. Rebalance periodically.
• Plan for catch-up contributions if eligible: 50+ can boost savings in the years leading up to retirement.

What question would you like answered next?

• Do you want help estimating a target retirement savings and a step-by-step contribution plan based on your income, age, and any employer match?
• Would you like a quick calculator-style method to project how different contribution levels affect your retirement balance over time?