Disclaimer: If you notice any errors in the information below, please let Benjamin Phillips know so he can make corrections. This information is for reference only, and you should consult with your financial or tax professionals before making any decisions.
2025 401(k) Limits
Participant Contributions
- Age 49 & Younger (ROTH & Pre-tax): $23,500
- Age 50 & Older (includes $7,500 catch-up contribution): $31,000
- Note: The mandatory ROTH catch-up contribution requirement has been delayed by the IRS until 2026.
Maximum Income Considered for Employer Contribution
- $350,000 – This is the maximum income the company can consider for their contribution.
- Company 10% Match: The most you can receive from the company in 2025 is $35,000.
- Unlike other airlines, Allegiant does not provide the 10% match beyond this limit in any form.
All Sources Contribution Limit
- $70,000 – This is the maximum amount that can be contributed to your 401(k) in 2025, including:
- Participant ROTH
- Pre-tax
- After-tax
- Company contributions
- For those 50 & older: The limit increases to $77,500, but the additional $7,500 can only be contributed as ROTH or Pre-tax.
After-Tax Contributions
Warning 1: Contributing too much to After-tax can reduce your company contribution. Unlike other airlines, you will not receive this lost contribution in any other form.
Warning 2: After-tax contributions are not matched by the company. Only ROTH and Pre-tax contributions receive matching funds.
- Safe After-tax Contribution: You can contribute up to $11,500 in After-tax funds in 2025 without reducing your company contribution (if you earn $350,000 or more).
- If earning less than $350,000: Use this formula to calculate your After-tax limit:
- After-tax limit = $70,000 – (ROTH + Pre-tax + 10% of company income for 2025)
Example: $250,000 Income & Max ROTH/Pre-tax Contributions
- Company contribution: 10% of $250,000 = $25,000
- Your ROTH/Pre-tax contribution: $23,500
- Total contributions so far: $48,500
- Remaining After-tax space: $70,000 – $48,500 = $21,500
- In this example, you can safely contribute $21,500 in After-tax funds without affecting your company contribution.
After-tax to ROTH Conversions
If you contribute to After-tax, do not leave it there. Instead:
- Call Fidelity after your first contribution to set up an automatic conversion to a ROTH 401(k).
- Alternatively, you can manually convert After-tax contributions to an external ROTH IRA.
- You also have the option to auto-convert to a ROTH 401(k) first, then later transfer to a ROTH IRA at your convenience.
2025 IRA Limits
Important: IRA limits are completely independent of 401(k) limits. Contributions and conversions between 401(k) and IRA accounts do not affect each other.
Contribution Limits
- Traditional & ROTH IRA Contribution Limit:
- $7,000 (if under 50)
- $8,000 (if turning 50+ in 2025)
- Limit applies to all IRA types combined per year.
Income Limits for Deductible Traditional IRA Contributions
- Single: Full contribution up to $79,000 (partial contribution up to $89,000).
- Married: Full contribution up to $126,000 (partial contribution up to $146,000).
Income Limits for ROTH IRA Contributions
- Single: Full contribution up to $150,000 (partial contribution up to $165,000).
- Married: Full contribution up to $236,000 (partial contribution up to $246,000).
Non-Deductible Traditional IRA Contributions
- No income limits.
- There are also no income limits on Traditional IRA to ROTH IRA conversions.
- Converted amounts do not affect annual contribution limits.
2025 Social Security Limits
- Taxable Wage Base: $176,100
- Maximum Social Security Tax: $10,918.20
