Plootus is a free (for now) financial planning platform that analyzes your 401(k) plan and recommends the proper asset allocation for your investment goals. It also identifies the lowest-cost options to help you save on fees.

These days, most employees participate in defined contribution plans through their work. But employers don't do the best job of providing their employees with educational resources to help them make the best investment decisions for their 401(k) or 403(b) plans. Can Plootus help? Find out in this full review. 

What Is Plootus?

Plootus is a financial technology company (fintech) that offers free financial planning tools to help ensure that you are on track for retirement. Plootus's platform allows you to search for your employer 401(k) 403(b), 457, or TSP plan. It's AI-powered algorithm will analyze your financial data to estimate your income needs at retirement, and will make recommendations about the investment/funds you should select inside your retirement account. It also takes investment fees into account to ensure it is recommending the most cost-effective solution.

What Does It Offer?

Here's a closer look at how Plootus works to help you plan for retirement. 

1-Step Process

Plootus refers to its service as a 1-Step Process. You can use its search engine to locate your employer-sponsored retirement account. From there, Plootus will analyze the available investments and make recommendations based on your risk profile. It looks at your current spending patterns and estimates your future retirement income needs. 

401(k) Recommendations

After analyzing your employer-sponsored retirement accounts (401(k), 403(b), 457, TSP, Plootus will provide you with specific recommendations for how you should invest. It focuses on low cost, well-diversified portfolios that are rebalanced over time to stay aligned to your risk-level and investment goals. Plootus aims to provide you with a recommendation within a week of you linking your 401(k) account. However, it can sometimes take up to 30 days. 

Ongoing Support

While you can quit the platform after you receive your 401(k) recommendation, Plootus will provide ongoing monitoring of your investment performance and make recommendations if it feels changes to your asset allocation are necessary. There is no cost involved. 

Can Plootus Provide Recommendations For My 529 Or IRA Plans?

At this time, Plootus only works with employer-sponsored retirement plan accounts. However, the company is considering adding more account types in the future, such as 529s and IRAs.  

Plootus Mobile App

In addition to its web platform, Plootus has a mobile app available for iOS and Android devices. If you don't want to manage your Plootus account on your own, you can delegate access to a financial advisor. And Plootus allows makes it possible to financial advisors to access multiple Plootus accounts. 

Are There Any Fees?

At this time, Plootus is completely free to use, and there are no hidden fees. However, the company does point out that they may start charging a fee in the future, similar to a monthly subcription model used by streaming services such as Netflix or Disney+. There are no contracts to sign, and you are free to leave the platform at anytime. 

How Does Plootus Compare?

The service Plootus offers is unique in that it's limited to employer-sponsored retirement accounts. At least for the time being. If you're looking for more comprehensive financial planning tools that can help you manage all of your financial goals, you might want to consider platforms like ProjectionLab or Boldin. 

ProjectionLab helps you model your finances around your values and the type of life you want to live. It allows you full control over the inputs, including your goals, timelines, and assumptions. For example, if you're trying to decide whether it's better to rent or buy your next home, or determine the financial implications of starting a family, ProjectionLab can help. 

Boldin (formerly NewRetirement) offers both free and paid plans to help people plan for retirement. You can get a free analysis of your retirement income vs. expenses within minutes, or pay an annual fee for more detailed analysis, including multiple scenarios, detailed charting, plan monitoring, budgeting, tax modeling, and more. 

How Do I Open An Account?

You can sign up with Plootus by selecting "Get Started" on its website homepage. From there, you'll be prompted to select your employer's 401(k) and link your bank accounts, credit cards, brokerage, and retirement accounts to the Plootus app. Plootus will use this information to estimate how much money you will need during retirement. 

Is It Safe And Secure?

Plootus takes several steps to ensure that your data is kept secure. They collect very little personal information from clients, and do not ask for a Social Security number or your specific home address. When connecting your bank accounts, Plootus does not collect or store your login details, rather they use a partner aggregator that employs bank-level security, including 256-bit encryption.

Contact

Plootus does not provide support via telephone. Your only option is to contact them by email at support@plootus.com. They monitor their email account during business hours, Monday to Friday. 

Is It Worth It?

If you're enrolled in an employer-sponsored retirement plan account, but don't know if your money is invested properly or if you're on track to meet your retirement goals, Plootus may be worth trying out. There is no cost, no contracts, and setting up your 401(k) for analysis seems like a very simple process. Of course, you will have to link your accounts to get the most accurate recommendations. If you need support beyond your 401(k), then should probably skip Plootus and choose a more comprehensive financial planning tool or consider dealing with a financial advisor. 

Check out Plootus here >>

Features

How much should I have saved for retirement by 25? What about 35 or 45?

It's fairly easy to know when you've reached certain financial goals such as building up your emergency fund or paying off your high-interest debt. But what about your retirement savings? Exactly how MUCH you should have saved for retirement right now or at any given point in life?

It's difficult to give an answer to this question for two main reasons.

First, everyone has different incomes. And, second, there are vastly different ideas of what retirement should entail. So how do you calculate how much should you have tucked away?

Let’s dive in!

Are Your Retirement Savings On Track?

There are different ideas on when you should retire and how much you should have saved. But I’ve decided to base the numbers listed below on the J.P. Morgan Asset Management's Annual Guide to Retirement.

The report offers solid benchmarks for anyone planning their retirement savings. The numbers below are based on several assumptions. Here’s what the report assumes:

If you make $90,000 or less per year, the report assumes that you will have an annual savings rate of 5%. But if you earn more than $100,000 per year, it expects your annual gross savings rate going forward from today to be twice as high, at 10%.

This is an important point to make because it means that JP Morgan's target retirement numbers for 25-year-old six-figure earners are actually lower than what they say those with five-figure salaries should have stashed away at age 25. In nearly all other cases, however, the report calls for saving a higher percentage of your income as it goes up if you're hoping to maintain an equivalent lifestyle in retirement.

How Much Should You Have Saved For Retirement?

Of course, your situation may look different than the assumptions above. But these benchmarks are still a good place to start your retirement savings. Let’s break down the numbers of how much you should have saved for retirement based on your age.

By Age 25

At 25, you may not be thinking too much about retirement. But starting early is an important part of building a healthy financial future. Here’s how much you should have saved based on your income:

* I personally don't like J.P. Morgan's math here - especially for the higher earners. Yes, it's probably your first job and you've only been earning this for a year or two, but at $100,000 in income I think you can have at least $25,000 saved by this point (because you've also hopefully been saving since you were 16).

By Age 35

As you hit your thirties, you might start thinking a little bit more about your retirement savings. Here’s what you should have saved by 35:

* I like these numbers a little better as I think they're a fair accurate representation of what you should have saved for retirement by age 35.

By Age 45

In your mid-forties, you might start to feel the pressure building to keep your retirement savings on track. Here’s how much you’ll need to have saved:

By Age 55

By your mid-fifties, you might be ready to retire. Since you're so close to the finish line at this point, it's critical to stay on track:

By Age 65

Finally, you’ve reached the finish line. Once you account for social security, here’s how much you’ll need to replace your income in retirement, according to the J.P. Morgan Guide to Retirement.

What If I Have Unique Retirement Plans?

Are you planning to spend more than your income in retirement? Want to travel more? Or plan to spend considerably less in retirement? Then you may need to rethink your retirement savings.

Consider reading How Much Money Do I Need To Retire by Todd Tresidder to solidify your unique savings plans.

Investment Income in Retirement

The first way to generate income in retirement is money from any investments that you have. This could be money from a taxable investment account, or maybe a retirement account like an IRA. You take a certain percentage of your assets out of your account each year to live on (known as the withdrawal rate). 

There is different advice on what is a safe withdrawal rate, depending on how aggressive you want to be. If you want to live on $40,000 a year, with a 4% withdrawal rate you will need $1,000,000. If you use a more conservative 3.3% withdrawal rate, you'll need $1,212,121. As you can see, your choice of a withdrawal rate that works for you can have a big impact on how much money you need for retirement.

Passive Income in Retirement

Another source of income in retirement is passive income generated from different assets, investments and activities. One of the most common passive income sources in retirement is real estate, usually rental income, but there are many ways to generate passive income. Dividend stocks, income from a blog or royalties from a published book are all ways to generate passive income. Every dollar that you earn each month from passive income is one dollar less that your investments need to generate.

What If I Want To Retire Early?

You may be intrigued by the FIRE movement — Financial Independence Retire Early. Many have championed the movement as a way to leave paid work that you don’t enjoy behind earlier than your mid-sixties.

If you want to pursue FIRE, you’ll need to create a different savings plan for your retirement. The traditional savings benchmarks that you would need to hit for a standard retirement age will need to be thrown out the window in pursuit of FIRE.

Consider learning more about FIRE and the extreme savings it would require before diving into this option. You can read more about the movement with The College Investor.

The Bottom Line

Saving for retirement can seem like an overwhelming task. But breaking it down into milestones based on your age and income can make it seem more manageable.

Not sure that you are on the right path? Consider consulting with a financial advisor to work out the specifics of your savings and investment plans. 

Remember, it's never too late to open an IRA account to start your retirement savings journey. And if you're a freelancer or small business owner,  you may want consider opening a Solo 410k or self-employed IRA to access higher contribution limits.

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If your company offer a 401(k) retirement plan program, it would be good idea to take advantage of it and boost your contributions. That's why we share the latest 401k contribution limits (and age limits for catch-up contributions).

Your company's 401(k) will likely offer a selection of investment options, generally mixes of various mutual funds or index funds. 

A plan that consists of a general index fund designed for employees retiring in a certain year range will probably have lower fees than an actively-managed equity fund, for instance.

However, employees who want to have a more active role in their portfolio may be able to choose between stocks and bonds, or even specific sectors or industries (technology stocks or U.S. long-term government bonds, for instance).

Even if you're self-employed, you can potentially take advantage of a solo 401k to both lower your taxable income and save for retirement. If you don't have a solo 401k plan yet, check out the best places to open a solo 401k.

2025 401k Contribution Limits

Here are the 2025 401k contribution limits. These were announced by the IRS on November 1, 2024. 

The employee deferral limit increased by $500 and the total combined contribution limit increased by $1,000 compared to 2024. However, starting in 2025, there is a new "higher" catch-up contribution for employees aged 60, 61, 62, and 63 who participate in these plans.

This means that for savers under 50, you can defer $23,500 per year, or a total combined $70,000. If you're over 50, you can save $31,000 per year, or a combined limit of $77,500. And if you're 60 - 63, you can contribute $34,750, or a combined limit of $81,250.

2024 401k Contribution Limits

Here are the 2024 401k contribution limits. These were announced by the IRS on November 1, 2023. 

The employee deferral limit increased by $500 and the total combined contribution limit increased by $3,000 compared to 2023.

This means that for savers under 50, you can defer $23,000 per year, or a total combined $69,000. If you're over 50, you can save $30,500 per year, or a combined limit of $76,500.

Past Year's Contribution Limits

If you're looking for reference to past year's limits, here you go:

2023 401k Contribution Limits

Here are the 2023 401k contribution limits. These were announced by the IRS on October 21, 2022. 

The employee deferral limit increased by $2,000 and the total combined contribution limit increased by $5,000 compared to 2022.

This means that for savers under 50, you can defer $22,500 per year, or a total combined $66,000. If you're over 50, you can save $30,000 per year, or a combined limit of $73,500.

2022 401k Contribution Limits

Here are the 2022 401k contribution limits. These were announced by the IRS on November 4, 2021. 

The employee deferral limit increased by $1,000 and the total combined contribution limit increased by $3,000 compared to 2021.

2021 401k Contribution Limits

Here are the 2021 401k contribution limits. These were announced by the IRS on October 26, 2020. 

The employee deferral limit stayed the same and the total combined contribution limit increased by $1,000 compared to 2020.

2020 401k Contribution Limits

Here are the 2020 401k contribution limits.

The employee deferral limit increased by $500 and the total combined contribution limit increased by $1,000 compared to 2019.

2019 401k Contribution Limits

Here are the 2019 401k contribution limits. These were announced by the IRS on November 1, 2018. 

The employee deferral limit increased by $500 and the total combined contribution limit increased by $1,000.

2018 401k Contribution Limits

Here are the 2018 401k contribution limits. Remember, you must have your employee deferral in the account by December 31, 2018. However, if you're self employed, you can fund the employer profit-sharing contribution anytime before you file your tax return. 

Remember, for those with a solo 401k, you can setup your employee elective deferral to be either Roth or Traditional. However, the employer contribution is always traditional.

Solo 401k Contribution Deadlines

If you're looking at this contribution limits for a solo 401k, it's important to note that you also are required to contribute by certain deadlines.

The solo 401k has two sets of deadlines: the deadline for the employee contribution (i.e. your elective contribution), and the deadline for the employer matching contribution (i.e. what your business puts into the 401k).

For your employee elective contribution, you must make your contribution by December 31, usually. If you're an S-Corp and on payroll, you must elect to make this contribution and have it paid by December 31. If you're a sole proprietorship or single-member LLC, you must still elect to make your contribution by December 31, but your contribution can be made up to the personal tax filing deadline (typically April 15). Sound strange? It is a bit strange, but the nuance is due to the type of tax return you file (S-Corp return versus Schedule C on your personal return).

For your employer contribution, you must make your contribution by the tax filing deadline of your corporation (or personal return if you're filing on a Schedule C). This could be March 15 or September 15 for S-Corps, or April 15 or October 15 for those filing on a personal return.

Benefits Of Contributing To A 401k

Withdrawals From A 401k Plan

As tax-deferred 401(k) contributions are not taxed as income in the year that the contribution is made (the amount is deducted on the employee's annual income tax returns), withdrawals are taxed instead. However, if an employee opts for a Roth 401(k), contributions are taxed before they are made, and then can be withdrawn in retirement tax-free.

The tax rate that will apply to these withdrawals is the income tax rate that applies to the account owner during the year of withdrawal. This is generally considered advantageous because most people will have lower taxable income during their retirement years than when they worked, meaning their effective tax rate on the amount withdrawn will be lower.

Owners of 401(k)s must be at least 59½ or be completely and permanently disabled to withdraw the funds in their account without tax penalties.

If they are younger than this age, they will pay a 10% penalty tax on the amount withdrawn in addition to owing normal income tax on the amount.

There are several limited exceptions to this 10% penalty, including the employee's death, qualified domestic court orders, and unreimbursed medical expenses that exceed 7.5% of the employee's Adjusted Gross Income.

Finally, account owners must begin making at least required minimum withdrawals, which are set by the IRS using a life expectancy table, when the account owner turns 70½, unless he or she is still employed.

A 50% penalty is applied on the minimum withdrawal if it is not taken for that tax year. 

Final Thoughts

IRA Contribution Deadline

One of the great things about an IRA is that you can contribute to your IRA all the way up until your tax filing deadline for the year.

Here are the current IRA contribution deadlines:

2025 Tax Year: April 15, 2026

2024 Tax Year: April 15, 2025

2025 IRA Contribution Limits

The IRS announced the 2025 IRA contribution limits on November 1, 2024. The limits remain unchanged from 2024, except for the SEP IRA which has a slightly higher total contribution limit.

Note: For a SEP IRA, it's the lesser of 25% of the first $350,000 of compensation or $70,000.

2025 IRA Income Limits

However, there are income limits to contributing to a Roth or Traditional IRA. These limits did adjust slightly for 2025.

Remember, if you're contributing to a traditional IRA, there are different limits whether you have a workplace retirement plan or not. 

2024 IRA Contribution Limits

The IRS announced the 2024 IRA contribution limits on November 1, 2023. These limits saw a nice increase, which is due to higher than average inflation. Basically, you can contribute $500 more to your IRA in 2024 (and $3,000 more to a SEP IRA).

2024 IRA Income Limits

However, there are income limits to contributing to a Roth or Traditional IRA. These limits did adjust slightly for 2024, per the IRS.

Remember, if you're contributing to a traditional IRA, there are different limits whether you have a workplace retirement plan or not. 

Prior Year IRA Contribution Limits

Here's a list of prior year IRA contribution amounts and limits.

2023 IRA Contribution Limits

The IRS announced the 2023 IRA contribution limits on October 21, 2022. These limits saw a big jump (relatively), which is due to higher than average inflation. Basically, you can contribute $500 more to your IRA in 2023 (and $5,000 more to a SEP IRA).

2023 IRA Income Limits

However, there are income limits to contributing to a Roth or Traditional IRA. These limits did adjust slightly for 2023, per the IRS.

Remember, if you're contributing to a traditional IRA, there are different limits whether you have a workplace retirement plan or not. 

2022 IRA Contribution Limits

The IRS announced the 2022 IRA contribution limits on November 4, 2021. Here's how much you can contribute for 2022. Note: these limits are the same as 2022 (except for the SEP, which increased by $3,000).

2022 IRA Income Limits

However, there are income limits to contributing to a Roth or Traditional IRA. These limits did adjust slightly for 2022, per the IRS.

Remember, if you're contributing to a traditional IRA, there are different limits whether you have a workplace retirement plan or not. 

2021 IRA Contribution Limits

The IRS announced the 2021 IRA contribution limits on October 26, 2020. Here's how much you can contribute for 2020. Note: these limits are the same as 2020 (except for the SEP, which increased by $1,000).

2021 IRA Income Limits

However, there are income limits to contributing to a Roth or Traditional IRA. These limits did adjust slightly for 2021, per the IRS.

Remember, if you're contributing to a traditional IRA, there are different limits whether you have a workplace retirement plan or not. 

2020 IRA Contribution Limits

The IRS announced the 2020 IRA contribution limits on November 6, 2019. Here's how much you can contribute for 2020. Note: these limits are the same as 2019 (except for the SEP, which rose by $1,000).

2020 IRA Income Limits

However, there are income limits to contributing to a Roth or Traditional IRA. These limits did adjust for 2020, per the IRS.

Remember, if you're contributing to a traditional IRA, there are different limits whether you have a workplace retirement plan or not. 

2019 IRA Contribution Limits

The IRS announced the 2019 IRA contribution limits on November 1, 2018. Here's how much you can contribute for 2019.

2019 IRA Income Limits

However, there are income limits to contributing to a Roth or Traditional IRA. These limits also adjusted in 2019.

Remember, if you're contributing to a traditional IRA, there are different limits whether you have a workplace retirement plan or not. 

2018 IRA Contribution Limits

Here are the 2018 IRA contribution limits. Remember, you can make your contribution all the way until April 15. 

2018 IRA Income Limits

It's important to remember that you can only contribute to a traditional or Roth IRA if you meet certain income limits. If you exceed these limits, you can look at a non-deductible IRA (which can be used with a backdoor Roth IRA if you want to).

Anyone with earned income and younger than 70 1/2 can contribute to a traditional IRA, but tax deductibility is based on income limits and participation in an employer plan.

What Happens If You Contributed Too Much or Made Too Much?

If you contributed to much, you will need to call your IRA provider and withdraw the excess contribution. 

If you made too much money to qualify for an IRA, you would need to do an IRA re-characterization. You can call your IRA company and they can walk you through the process.

Types Of IRAs

Two types of IRAs, Traditional and Roth IRAs, allow employees to control and make contributions to on their own, while the third type of IRA, the SEP IRA, is distinct in being an employer-provided benefit. Below is an overview of each of these three types.

If you don't know which is best for you, check out this guide: The Ultimate Guide To Roth vs Traditional IRA Contributions.

Traditional IRAs

Traditional IRAs are tax-deductible (as long as the owner's income does not exceed certain limits) and tax-deferred retirement accounts, meaning that annual contributions to the IRA are not taxed at the time of contribution and are instead taxed when money is withdrawn.

This may be a good choice for investors who expect to be at a lower income tax bracket in the future (or investors who believe future tax brackets will be lower in general, even if they believe they will be making the same amount of money).

Roth IRAs

Roth IRAs are post-tax retirement accounts, meaning that money contributed to the account has already been taxed.

However, both the amount contributed and future earnings on the investments in the account may be withdrawn without paying further taxes. This may be an advantageous choice for investors who believe they will be in a higher tax bracket in the future.

SEP IRAs

Simplified Employee Pension (SEP) IRAs are used by business owners and must also be offered to all qualifying employees, if there are any.

Employees that are at least 21, who have worked for that employer for three or more years out of the previous five, and who have earned at least $750 (the limit for both 2023 and 2024) for that year qualify to participate in the plan.

Only employers may contribute to a SEP IRA, though they are not locked into making certain annual contributions the same way a 401(k) plan might be. 

Withdrawals From IRAs

IRAs, because they are designed to provide for people during their retirement years, impose restrictions on withdrawing funds before retirement age, which is defined as age 59½ or complete and total disability. 

If the withdrawal does not meet the requirements for a qualifying exception to these provisions, a 10% penalty will apply to the amount withdrawn.

Final Thoughts

A 403(b) plan is a tax-advantaged retirement savings plan designed for employees of certain tax-exempt organizations, such as public schools, colleges, universities, hospitals, and religious organizations. The plan allows eligible employees to save for retirement by making pre-tax contributions, reducing their taxable income and providing tax-deferred growth on their investments.

However, like all similar retirement plans (401k or IRA), there are contribution limits to how much you can contribute every year. Here are the limits for 2024 and 2025, and a basic guide to how the 403b contribution limits work.

2025 403(b) Contribution Limits

The 403b contribution limits for 2025 are as follows. Notice the change to the catch-up contribution limits starting in 2025.

2024 403(b) Contribution Limits

The 403b contribution limits for 2024 are:

This means that for savers under 50, you can defer $23,000 per year, or a total combined $69,000. If you're over 50, you can save $30,500 per year, or a combined limit of $76,500.

Prior Years' Contribution Limits

If you're looking for reference to past year's limits, here you go:

2023 403(b) Contribution Limits

The 403b contribution limits for 2023 are:

2022 403b Contribution Limits

This year was the first year inflation was really making contribution limits rise.

2021 403b Contribution Limits

2020 403b Contribution Limits

Understanding 403(b) Contribution Limits

There are three main types of contributions made to a 403b plan:

1. Employee elective deferrals: The employee chooses to contribute a portion of their salary to the plan.
2. Employer contributions: The employer may choose to contribute to the employee's account, usually through a matching program.
3. Non-elective contributions: These are contributions made by the employer on behalf of the employee, regardless of whether the employee contributes.

Employee Elective Deferrals

In 2024, the maximum amount an employee can contribute to their 403b plan through elective deferrals is $23,000. This limit applies to all employees, regardless of their age or years of service.

Employer Contributions

There is no specific limit for employer contributions to a 403b plan. However, the total combined contributions, including both employee elective deferrals and employer contributions, are subject to a limit. In 2024, that limit is $69,000 for employees under 50, and $76,500 for employees over 50.

Total Combined Contributions

The total combined contributions to a 403b plan in 2024 cannot exceed the lesser of:

1. 100% of the employee's compensation for the year, or
2. $69,000 (subject to cost-of-living adjustments).

This limit includes employee elective deferrals, employer contributions, and non-elective contributions.

Catch-Up Contributions For Individuals Aged 50 And Above

Employees aged 50 or older are eligible to make additional catch-up contributions to their 403b plan. In 2024, the catch-up contribution limit is $7,500. This means that an employee aged 50 or older can contribute a total of $30,500 through elective deferrals ($23,000 + $7,500).

Starting in 2025, there is an additional "higher" catch-up contribution for individuals ages 60 through 63. You can contribute an additional $11,250, making your total contribution through elective deferrals $34,750.

Factors Affecting 403(b) Contribution Limits

There are other factors impacts 403b contribution limits, some of which are unique to 403b plans.

Employee's Age

As mentioned earlier, employees aged 50 or older can make additional catch-up contributions, which increases their overall contribution limit. In 2024, this catch-up contribution for age is $7,500.

Years Of Service

Certain employees with 15 or more years of service at a qualifying organization may be eligible for an increased contribution limit. This is unique to 403b plans.

The additional amount is up to $3,000 per year, for a maximum lifetime increase of $15,000. This is subject to specific plan provisions, so employees should consult their plan documents for eligibility and rules. 

The exact amount you can contribute may be reduced based on your previous contributions to your employer's plans. You should check with your plan before taking advantage of this option.

Compensation

The maximum contribution limit is based on the employee's includible compensation. Includible compensation refers to the total taxable income an employee receives from their employer, which is used to determine the maximum allowable contribution. You cannot contribute more than 100% of your includable compensation. 

Coordination With Other Retirement Plans

Employees who participate in multiple retirement plans, such as a 403b and a 401k, should be aware of the combined contribution limits. The total amount contributed across all plans cannot exceed the individual limits for each type of plan.

How To Maximize Your 403(b) Contributions

Maximizing your 403b is a great way to build wealth over the long term. However, depending on your ability, it could be challenging to do at first. Here are some tips to try and maximize your 403b contributions.

Planning Ahead

To make the most of your 403b plan, it's essential to plan ahead and evaluate your financial goals. Determine how much you can afford to contribute and adjust your contributions as needed to reach your retirement savings goals.

Take Advantage Of Employer Matching

If your employer offers a matching contribution, try to contribute at least enough to receive the full match. This is essentially free money, and it can significantly boost your retirement savings.

Review Your Contribution Limits Annually

Contribution limits may change due to cost-of-living adjustments announced by the IRS. In fact, over the last few years, contributions limits have been rising substantially. Review your contribution limits each year and adjust your contributions accordingly to maximize your savings potential.

Final Thoughts

Understanding and maximizing your 403b contribution limits is crucial for a successful retirement savings plan. By staying informed about the various factors affecting your contribution limits and taking advantage of opportunities to increase your savings, you can build a solid foundation for a comfortable retirement.

Frequently Asked Questions

Here are some of the most frequently asked questions about 403(b) plans and contribution limits.

• What is the 403b contribution limit for 2024?
  The employee elective deferral limit for 2024 is $23,000. For employees aged 50 or older, they can make an additional catch-up contribution of $7,500. The overall combined limit is $69,000.
• Can I contribute to both a 401k and a 403b plan?
  Yes, you can contribute to both plans, but the combined contributions cannot exceed the individual limits for each type of plan.
• Do employer contributions count towards the 403b contribution limit?
  Employer contributions do not count towards the employee elective deferral limit but are included in the total combined contribution limit.
• How do catch-up contributions work for employees aged 50 and older?
  Employees aged 50 or older can contribute an additional $7,500 in catch-up contributions to their 403b plan in 2024, bringing their total elective deferral limit to $30,500.
• Can I increase my 403b contribution limit if I have 15 years of service?
  Certain employees with 15 or more years of service at a qualifying organization may be eligible for an increased contribution limit of up to $3,000 per year, for a maximum lifetime increase of $15,000.