Retirement planning is not just a financial goal—it’s the cornerstone of a secure and fulfilling future. At Premier Financial Group, we believe that crafting a retirement strategy is one of the most rewarding milestones you can achieve. Whether you’re just starting your career, navigating mid-life transitions, or nearing retirement, it’s never too early to take action. Our mission is to make your retirement journey one of clarity, confidence, and empowerment, helping you turn aspirations into reality.

Each year brings new updates to retirement plan rules, creating fresh opportunities to enhance your financial future. For 2025, understanding the latest contribution limits and strategies is more important than ever. These changes aren’t just numbers—they’re stepping stones to greater financial peace of mind. Let’s explore these updates in depth, uncover why they matter, and discover how they can bring you closer to your retirement dreams.

Understanding 2025 Contribution Limits

Employer-Sponsored Retirement Plans

These include 401(k), 403(b), and 457 plans, which allow employees to contribute pre-tax income to a retirement account. In 2025, the contribution limits are:

  • Under age 50: You can contribute up to $23,500.
  • Ages 50-59: With the catch-up provision, the limit increases to $31,000.
  • Ages 60-63: A unique “super catch-up” limit applies, allowing contributions of up to $34,750, provided they do not exceed 100% of your compensation.

Jeremy Sorci CFP®, AFIM™, an Advisor at Premier Financial Group, explains that maximizing contributions is key to building a successful retirement portfolio. “Your stock picks might be great, but one of the most important factors in retirement success is how much you put away and when you start,” he notes. He emphasizes the importance of starting early and aiming to save 15-20% of your gross income, including employer matches, to maintain your standard of living in retirement.

Additionally, Jeremy highlights the benefits of leveraging employer-sponsored plans for lower-cost investment options and reduced fees, as many employers cover trading, recordkeeping, and custodial costs. Participating fully in these plans ensures you don’t miss out on potential profit-sharing contributions from your employer.

Traditional and Roth IRAs

Individual Retirement Accounts (IRAs) offer tax advantages for retirement savings:

  • Traditional IRA: Contributions may be tax-deductible, and taxes are deferred until withdrawal.
  • Roth IRA: Contributions are made with after-tax dollars, and withdrawals during retirement are tax-free. This can be an excellent vehicle for estate planning, as heirs are not burdened with taxes on inherited Roth IRA funds.

For 2025, the contribution limits for both are:

  • Under age 50: $7,000 annually.
  • Ages 50 and older: An additional catch-up contribution increases the limit to $8,000.

Jeremy explains that choosing between Traditional and Roth IRAs depends largely on your tax situation. “If you owe taxes in the current year, prioritizing a Traditional IRA can help reduce your current tax liability. However, if you’re receiving a tax refund, it’s a great opportunity to contribute to a Roth IRA, if available,” he says. He also points out that Roth accounts avoid required minimum distributions (RMDs), allowing greater flexibility in retirement planning.

Another key consideration is how these accounts impact your heirs. “If you leave a Traditional IRA to your beneficiaries, they have only ten years to withdraw the funds, potentially pushing them into a higher tax bracket. With a Roth IRA, they inherit the funds tax-free, avoiding that issue entirely,” Jeremy explains.

SIMPLE IRAs

The Savings Incentive Match Plan for Employees (SIMPLE IRA) is designed for small businesses and self-employed individuals, enabling employer and employee contributions. Contribution limits are:

Under age 50: $16,500.

Ages 50-59: Increased to $20,000.

Ages 60-63: A maximum limit of $21,750.

Jeremy highlights the simplicity of SIMPLE IRAs but warns of their restrictions. “They’re great for small businesses with minimal turnover, but quirky rules can make them less flexible. For example, funds can’t be moved for two years after the initial contribution without facing a 25% penalty,” he cautions.

SEP IRAs

The Simplified Employee Pension (SEP IRA) is a plan tailored for business owners and self-employed individuals, where only employers contribute. The contribution limit is 25% of compensation or $70,000, whichever is lower.

Why Your Retirement Strategy Matters

With evolving life transitions—whether a career change, business sale, or inheritance—it’s critical to have a tailored retirement plan that aligns with your goals. Retirement planning is about more than investments; it’s about safeguarding your future.

Out-of-pocket healthcare expenses alone can reach hundreds of thousands or more for a couple after age 65. Assisted living facilities can cost upwards of $10,000 per month, making it crucial to consider health and family history when planning.

Jermey advises, “Think of retirement savings as a tool for your future. While many people want to leave something behind for their heirs, your primary focus should be on ensuring your own financial security.”

Partner with Premier for Your Retirement Goals

Retirement planning doesn’t have to be overwhelming. With a trusted advisor, you can make informed decisions and maximize the opportunities available. Premier Financial Group offers personalized guidance, employee education meetings, and evidence-based wealth management strategies to empower you.

Whether you’re looking to optimize employer-sponsored plans, explore IRAs, or create a comprehensive estate plan, Premier can help craft a roadmap tailored to your needs. Let’s work together to ensure your financial future is as secure and fulfilling as possible.

Schedule a consultation today, and take the next step toward achieving your retirement dreams with Premier Financial Group.