Even if your company doesn’t match your contributions, your 401(k) or 403(b) plan remains one of the most powerful tools for building long-term wealth.
Here’s how to take full advantage of it in 2025—and why it still matters, with or without help from your employer.
2025 401(k) and 403(b) Contribution Limits
The IRS has increased contribution limits for 2025. Here’s what you can contribute this year:
- Under 50: Up to $23,500
- Age 50+: Add a $7,500 catch-up, for a total of $31,000
- Ages 60–63: Eligible for a new “super catch-up” of $11,250, bringing the total to $34,750
These limits apply whether or not your employer offers a match.
Why You Should Still Contribute Without an Employer Match
Even if you’re on your own, these accounts offer major benefits:
1. Tax Advantages
- Traditional 401(k)/403(b): Pre-tax contributions lower your taxable income now.
- Roth 401(k)/403(b): Pay taxes now, enjoy tax-free withdrawals later.
Either way, your money grows tax-advantaged—a key feature for long-term wealth building.
2. Tax-Deferred or Tax-Free Growth
- You won’t pay taxes on gains until withdrawal (Traditional)
- Or you won’t pay taxes at all in retirement (Roth, if qualified)
This gives your investments more room to compound efficiently.
3. Automated Savings = Consistency
- Automatic payroll deductions help you build wealth without thinking about it
- Even small, consistent contributions can add up significantly over time
How to Maximize Your 401(k)/403(b) in 2025 Without a Match
1. Aim for the Max Contribution
Try to contribute the full $23,500 (or more if you’re eligible for catch-ups).
If that’s not realistic today, start with what you can and increase 1–2% each year.
2. Take Full Advantage of Catch-Up Rules
If you’re:
- 50–59 years old, you can add $7,500
- 60–63 years old, you can add $11,250 under new SECURE Act 2.0 rules
This gives late savers a powerful boost.
3. Rework Your Budget
Cutting unnecessary expenses can unlock extra funds to redirect into your retirement account—use BGH’s budgeting tools to identify areas to optimize.
4. Set Realistic, Incremental Goals
If the max feels overwhelming, break it down:
- Start with 10% of income
- Increase contributions by 1% every 6–12 months
5. Use After-Tax Contributions (If Available)
Some plans allow after-tax contributions beyond the IRS limit, which can be rolled into a Roth IRA later for additional tax-free growth.
6. Supplement with Other Accounts
Don’t forget about IRAs, HSAs, or taxable brokerage accounts for more retirement flexibility.
The Bottom Line
No employer match? No problem. The power of a 401(k) or 403(b) lies in its tax treatment, automated savings, and long-term compounding potential—not just the match.
Use 2025’s higher contribution limits to take full control of your retirement, and make consistent, intentional progress.
Blue Grasshopper helps DIY investors like you make smarter retirement decisions—no financial advisor required.
Start building your future, your way.
Guillaume Decalf
Guillaume Decalf is a financial advisor registered with the SEC (CRD #7003690 – Firm CRD #298549). He is the founder of several successful financial firms, including Blue Grasshopper, which provides powerful tools to help individuals take control of their investments. Over the course of his career, he has advised more than 600 households and oversees over $100 million in assets under management (as of 12/31/2024).*
Registration with the SEC does not imply a certain level of skill or endorsement. More information at adviserinfo.sec.gov.