The School for Monetary Planning (CFFP) units annual limits on the amount of cash that may be contributed to sure kinds of retirement accounts. These limits are adjusted every year for inflation, and the 2025 limits have just lately been introduced. By understanding these limits, you’ll be able to just be sure you are contributing the utmost quantity attainable to your retirement financial savings.
There are a number of various kinds of retirement accounts which have totally different contribution limits. For instance, the restrict on contributions to conventional and Roth IRAs is $6,500 for 2025, up from $6,000 in 2023. The restrict on contributions to 401(okay) plans is $22,500 for 2025, up from $20,500 in 2023. These limits are per individual, so a married couple can contribute as much as $13,000 to their IRAs and $45,000 to their 401(okay) plans.