Once you retire, you’ll likely need to draw on a variety of financial sources — and one of the most important ones may be your 401(k). And for 2025, you can put even more money into your plan than ever.

You can invest in your 401(k) in one of two ways, depending on your employer’s plan. With a traditional 401(k), you contribute pre-tax dollars, which can lower your taxable income, and your money can grow tax deferred. If you have a Roth 401(k) option, you can contribute after-tax dollars, which aren’t deductible, but your eventual withdrawals will be tax-free if you’ve had your account at least five years and you’re at least 59½.

  
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