The IRS has recently released the 2025 retirement plan contribution limits. For super-savers at Chevron, this is great news. Chevron employees can now contribute $23,500-$34,750, depending on their age, of pre-tax or Roth savings to the Chevron Employee Savings Investment Plan. That means that Chevron professionals can get up to $85,550-$98,800 of retirement savings into tax-efficient vessels in 2025, depending on their age. Let's look at the breakdown below.
| Ages | Pre-Tax | After Tax | Company Match | Backdoor Roth | HSA (Family) | Total |
| Under 50 |
$23,500 |
$18,500 |
$28,000 |
$7,000 |
$8,550 |
$85,550 |
| 50-54 |
$31,000 |
$18,500 |
$28,000 |
$8,000 |
$8,550 |
$94,050 |
| 55-59 |
$31,000 |
$18,500 |
$28,000 |
$8,000 |
$9,550 |
$95,050 |
| 60-63 |
$34,750 |
$18,500 |
$28,000 |
$8,000 |
$9,550 |
$98,800 |
| 64 & Above |
$31,000 |
$18,500 |
$28,000 |
$8,000 |
$9,550 |
$95,050 |
Chevron offers up to an 8% match to employee 401(k) accounts. Since the annual compensation limit for 2025 is now $350,000, Chevron will now cap out contributions to the ESIP at $28,000. In 2025, once you begin making more than $350,000, Chevron will make its contributions to the Employee Savings Restoration Plan (ESIP RP) instead of the Employee Savings Investment Plan. If 2025 is the first year you expect to make over $350,000, check that you have an allocation and investment strategy set up for your ESIP RP.
If you’re under age 50, the total IRS limit for 401(k) contributions in 2025 from employee or employer contributions is $70,000. Here's how it breaks out:
After turning 50, but before reaching age 55 when an additional HSA catch-up comes into play, your contributions could look like this:
However, if you’re age 55-59 or over 63, the total IRS limit for 401(k) contributions in 2025 from employee or employer contributions is $77,500, broken out as follows:
If you max out all of these sources and the full HSA contribution limit for families with an individual catch-up because you're over 55, you could save over $95,050 in tax-efficient vessels in 2025!
Employees aged 60 to 63 after January 1, 2025, can contribute even more to workplace retirement plans thanks to legislation under Secure Act 2.0. Individuals in this age group have a higher catch-up contribution amount, indexed each year for inflation.
Instead of the standard catch-up amount of $7,500 for individuals aged 50-59 or 63+, savers aged 60-63 can leverage a catch-up amount of $11,250 in 2025 to boost their retirement savings. Here's how it breaks out across sources:
This change provides a valuable opportunity for older employees to enhance their retirement savings as they approach retirement. Employees in this 3-year age bracket maxing out their Chevron ESIP, a family HSA with catch-ups, and backdoor Roths can save up to $98,800 in 2025!
The annual compensation limit for 2025 has increased from $345,000 to $350,000. If you make over $350,000 in base and bonus compensation for 2025, remember to ensure that you max out your ESIP contributions before earning $350,000. After you earn $350,000 of income, you and Chevron can no longer contribute to the Employee Savings Investment Plan.
Chevron offers up to an 8% contribution to employee 401(k) accounts. Since the annual compensation limit in 2025 is now $350,000, Chevron will cap out its contributions to the ESIP at $28,000. Once you exceed the annual income threshold, Chevron makes their contributions to the Employee Savings Restoration Plan (ESIP RP) instead of the Employee Savings Investment Plan.
If 2025 is the first year you expect to make over $350,000, check that you have an allocation and investment strategy set up for your ESIP RP.
The IRA contribution limit for 2025 stays at $7,000 ($8,000 if over age 50). Though many are prevented from directly contributing to a Roth IRA, many Chevron employees can use the backdoor Roth strategy to get more saved in Roths each year.
The maximum amount Chevron employees can put toward after-tax contributions to get the full Chevron match benefit has increased to $18,500. Some Chevron professionals accidentally overfund the after-tax source within the 401(k), which can impact the contributions they receive from Chevron.
If you are contributing after-tax dollars to the Chevron ESIP, consider rolling out the after-tax funds to a Roth IRA at the tail end of the third quarter to take advantage of the mega backdoor Roth strategy. For many Chevron employees that are contributing after-tax, the end of the third quarter is the best time to do what we call an "after-tax rollover" because Chevron will freeze all company and employee after-tax basic contributions to the ESIP for the 90 days that follow the distribution.
A Health Savings Account (HSA) is often an under-utilized benefit that provides a unique triple tax advantage:
When using an HSA as a retirement fund, Chevron employees can benefit from both tax deductions and tax-free growth, making HSAs a valuable tool for long-term savings and retirement planning.
At Willis Johnson & Associates, we work with our Chevron clients to ensure they get the full 8% company contribution, take advantage of backdoor Roth IRAs for long-term tax savings, and facilitate after-tax roll-outs from the Employee Savings Investment Fund to get maximum savings. If you have any questions about the 2025 contribution and compensation limits, please contact your advisor or schedule a free consultation with one of our Chevron specialists.