401(k) Retirement Plan

The IRS limits the maximum amount you can contribute to your 401(k) each year, whether it’s a traditional pre-tax contribution, a Roth after-tax contribution, or a combination of both.

For 2025, the contribution limits are as follows:

• Up to $23,500 for individuals through age 49
• Up to $31,000 for individuals ages 50–59 and 64+
• Individuals who are ages 60–63 at any point during the 2025 tax year may contribute up to $34,750, due to an increased catch-up contribution limit
• 2026 contribution limits will be posted once announced by the IRS.

These limits apply across both traditional and Roth 401(k) contributions combined, not separately. You can choose how to split your contributions between the two options based on your financial planning goals.

Salem Health provides two types of contributions for enrolled participants:

1. Matching contribution – qualify after one Year of Eligible Service and begin receiving contributions the first pay period after completing one Year of Eligible Service
2. Experience contribution – for eligible participating employees (those who contribute 1% or more of salary), Salem Health will make an additional contribution based on your Years of Service in a benefit eligible position the pay period following that achievement.

Special rules apply if you have periods of broken service during your Year of Benefit Service.