By Dr. Jim Dahle, WCI Founder

Contribution limits for 401(k)s, 403(b)s, 457(b)s, IRAs, Roth IRAs, HSAs, FSAs, SIMPLE IRAs, and SEP-IRAs are all indexed to inflation. While the retirement contribution limits do not go up every year and while every account does not use the same formula for when there will be an increase, you will generally see an increased contribution every year or two.

Inflation exploded in 2022, all the way up to 9.1% in July, and as a result, the 2023 contribution limits for many of these accounts were increased in a relatively significant way. But inflation has been tamed in the past two years, and as a result, the increases in those limits for 2025 aren’t quite as extravagant. If you know the latest inflation numbers, it is possible to calculate the increase even before the IRS announces it in October or November (in 2023, the

Keep reading this article on The White Coat Investor.

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