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

• $66,000 for 2023 and $69,000 for 2024 OR
• 100% of your includible compensation 

Within this limit, the General Limit on salary reduced contributions is $22,500 for 2023 and $23,000 for 2024. This limit can be greater if you are 50 years of age or older, up to an additional $7,500 for 2023 and 2024. 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%.