Compare Your Contribution Options

You have three ways to contribute to the ITW 401(k) Retirement Plan. Read more to see what’s right for you.

Three Ways to Save

Planning for the future is important, but not everyone wants to do it the same way. The three options allow you to choose the best way to save to meet your needs and financial goals in retirement.

You’re going to pay taxes on the money in your 401(k) account. It’s just a matter of when. The goal is to pay those taxes when you get the biggest tax advantage. With the three options, you can choose the one — or a combination — that helps you save for life your way. And remember: The longer your money stays in the plan, the more you benefit from compounding — the snowball effect when your 401(k) investment earnings grow over time. 

Before-TaxRothAfter-Tax
Contributions
Your contributions are deducted before taxes are taken from your paycheck.Your contributions are deducted after taxes are taken from your paycheck.
Distributions
You owe taxes on your distributions and any investment earnings.You get tax-free distributions of your contributions and any investment earnings that meet certain criteria.You get tax-free distributions of your contributions but owe taxes on any investment earnings.
Contribution Limits
For 2025, the combined annual contribution limit for the before-tax and Roth options is $23,500.The $23,500 limit does not apply.
Catch-Up Contributions
For employees age 50 and older in 2025, the combined catch-up contribution limit for the before-tax and Roth options is $7,500Catch-up contributions cannot be made on an after-tax basis.
ITW Matching Contributions
  • ITW matching contributions apply whether you contribute using before-tax, Roth or after-tax contributions — or any of the options combined.

  • ITW contributions are made before-tax. This means there are no taxes when they're credited to your account, but you’ll owe taxes on your distributions and any investment earnings.

  • Contribute 6% or more of your annual eligible pay to receive the full ITW match.

See How Your 401(k) Contribution Options Compare

 
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Choose How to Contribute

Now that you’ve seen the options, get more information to help you decide which one — or more! — is right for you.

The Health Savings Account (HSA): Another Way to Save

If you enroll in the HealthSaver Plan for medical coverage, you’ll have an HSA you can use for health care expenses now or save for later. The HSA and ITW 401(k) Retirement Plan offer distinct advantages while working together to maximize your savings potential for retirement.

The HSA gives you a way to save for health care costs today and in retirement, while the ITW 401(k) Retirement Plan provides a way to save for a paycheck in retirement. Here’s how to make the most of both:

Make sure you’re getting the full company matching contribution to the ITW 401(k) Retirement Plan.

Contribute at least 6% of your annual eligible pay.

Contribute to your HSA up to the IRS maximum.

You and ITW together can contribute up to $4,300 for individual coverage or $8,550 if you cover one or more family members. If you’ll be age 55 or older in 2025, you can contribute an additional $1,000.

Contribute to the ITW 401(k) Retirement Plan up to the IRS limit.

For 2025:

  • Your combined before-tax and Roth contributions cannot exceed 50% of your pay.
  • Your after-tax contributions cannot exceed 10% of your pay.
  • The 2025 employee contribution annual limit (pre-tax and Roth combined) to the ITW 401(k) Retirement Plan is $23,500 (plus an additional $7,500 if age 50 or older).

Note: This is not intended to provide you with personal tax or financial planning advice. Be sure to talk with a qualified financial advisor and/or tax specialist about your retirement strategy.

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