Contributions by you, your employer and a state convention (if applicable) can total the lesser of:

• $69,000 for 2024 OR $70,000 for 2025
• 100% of your includible compensation 

Within this limit, the General Limit on salary reduced contributions is $23,000 for 2024 and $23,500 for 2025. This limit can be greater if you are 50 years of age or older, up to an additional $7,500 for 2024. For 2025, ages 50-59 and 64 and older can contribute up to an additional $7,500 and ages 60-63 can contribute up to an additional $11,250. This additional amount is called a Catch-Up Contribution. In determining your compensation, do not include housing allowance. Salary reduced contributions can be Tax-Sheltered or Roth Elective Deferrals.

Most Americans will need 70% to 100% of their pre-retirement income at retirement. In order to provide for this level of income at retirement, financial planners frequently recommend to younger clients that they make contributions of at least 10% to 20% of their gross salary into a retirement account.

For clients who have not been making contributions into their retirement account of at least 10% each year, they may need to contribute even more than 20%.