If You Can’t Max Out Your 401(k), at Least Do This

There’s a reason most people with access to a 401(k) plan don’t manage to contribute the max. It takes a lot of money to do that given how generous 401(k) limits have gotten.

In 2025, savers under 50 can contribute up to $23,500 to a 401(k). Those 50 and older, though, get a $7,500 catch-up that raises that total to $31,000.

And effective this year, there’s a super-catch up available for people between the ages of 60 and 63. People in that age range get a catch-up worth $11,250 instead of $7,500, bringing their total allowable contribution up to $34,750.

If you’re bummed about not being able to max out a 401(k), try not to beat yourself up. Even if you earn $100,000 a year, which is certainly a decent salary, if you’re 51, maxing out means contributing roughly one-third of your paycheck.

But if you can’t max out a 401(k), there’s one specific savings milestone you should aim for instead.

Don’t leave free money on the table

Most companies that offer a 401(k) plan also offer an employer match. Your company’s match could be generous or stingy. But either way, you should do your best to snag that workplace match in full. If you don’t, you’re pretty much saying “no thanks” to free money.

Not only that, but if you give up a 401(k) match, you’re also giving up potential gains on that money. So let’s say your company is willing to match contributions up to 5% of your salary, and you earn $100,000. That means that if you put $5,000 into your 401(k), your employer will contribute that same amount.

Over time, a $5,000 employer contribution could grow into $100,000 with the right investments. So if you give up that $5,000 in the near term, you may end up losing out on more retirement income than you’d expect.

How to find more money for your 401(k)

If money is tight and you’re basically maxing out your paycheck on expenses, then you might struggle to fund your 401(k). If so, snagging your employer match could boil down to getting creative.

You could try renting out a room in your home for extra cash, or working a side hustle for additional money. And these are only a couple of options.

You definitely should not make yourself miserable in the present to save for the future. But you do need to save something for your retirement, so it might boil down to making compromises.

What if there’s no 401(k) match?

If your workplace retirement plan doesn’t have a match, then your goal should be to save as much as you can afford with the goal of ramping up your contributions every year. One good way to do that is to bank your raise at the start of each year. It’s easier to put that money into a 401(k) if you aren’t used to spending it.

But remember, even if your 401(k) plan doesn’t have a match now, that could change in the future. So keep tabs on your workplace plan and do what you can to avoid having to say no to free money.

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