It’s that time of year again! We’ve made it to the end of the calendar year and past the cut-off date for the 12/31 paycheck (well, I have, at least – ymmv) and so it’s time to adjust our retirement contributions to reflect 2025’s new maximums.
I know I am not alone in being a tiny bit excited to make these changes (I’m doing it! I’m keeping up with inflation!) but I think it’s a pretty small pool. Maybe the excitement will eventually wear off, but as someone who started off at the age of 30 contributing 10% of salary to my 401(k), being able to gradually take advantage of more and more of that tax-advantaged space has been a slow drip of dopamine over the last 8 years.
As I thought about this post, I took a trip down memory lane with regards to my retirement contributions. I’m a pretty big fan of the “boiling the frog” method, or the “gradually turning the screws” method if you prefer, and have continued to push myself to do with slightly less even as my income has risen. In 2025, I will take home less than I did in 2020, despite making more than $50k per year more than I did back then.
A rough timeline of my retirement contributions, starting at age 30:
| Year | Contribution |
|---|---|
| 2016 | 10% |
| 2017 | 12% |
| 2018 | 14% |
| 2019 | 15% |
| 2020 | $19,500 (max) |
| 2021 | $19,500 (max) / 5% MBDR |
| 2022 | $20,500 (max) / 12% MBDR |
| 2023 | $22,500 (max) / 17% MBDR |
| 2024 | $23,000 (max) / 18% MBDR |
Next year, I’ll be using the entirety of the mega backdoor Roth space I have available and the entirety of the space legally allowed, thanks to the change in company policy this year. I have finally reached the end of the savings available to me! (other than inflation adjustments going forward) Maybe we’ll consider a 403(b) next.
Violet Sky 
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