It depends. You can always add more to your 401(k)s or HSA. The maximums for 2025 are shown below.
- The 401(k) contribution limit for 2025 is $23,500 for employee salary deferrals, and $70,000 for the combined employee and employer contributions. If you're age 50 to 59 or 64 or older, you're eligible for an additional $7,500 in catch-up contributions.
- For 2025, the maximum HSA contribution limit is $4,300 for self-only coverage and $8,550 for family coverage, with an additional $1,000 catch-up contribution allowed for those age 55 and older.
It doesn't hurt to have an additional amount withheld just to get you close to even based on the following formula. Take the balance due for 2024, divide it by the number of pay periods remaining in 2025 (split it for each of you or have only one of you add it to your W-4. Enter the amount on Line 4(c) of the W-4 form.
Key Point: Eliminate any underpayment penalty by using the following information if necessary.
Generally, you can avoid the penalty if your total timely estimated payments and withholdings are greater than or equal to the lesser of:
- 90% of the total tax after credits for the current year, or
- 100% of the total tax after credits in the prior year
- See one exception below.
You can also avoid the penalty if the amount you owe is less than $1,000 as long as any estimated tax payments you made are timely.
Note: High-income taxpayers. If your adjusted gross income (line 11 of your 2023 Form 1040) is greater than $150,000 (or $75,000 if you're married and file a separate return from your spouse), you can avoid a penalty by paying at least 110% of your total tax from the prior year.
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