Complete Checklist for Maximizing Retirement Account Contributions

Annual Contribution Limits (2025)

Review these limits each January when new IRS limits are announced

Traditional Retirement Accounts

• 401(k)/403(b)/TSP: $23,500 base limit
• 401(k) Catch-up (50+): Additional $7,500 ($31,000 total)
• Traditional/Roth IRA: $7,000 base limit
• IRA Catch-up (50+): Additional $1,000 ($8,000 total)
• SIMPLE IRA: $16,000 base limit
• SIMPLE IRA Catch-up (50+): Additional $3,500 ($19,500 total)
• SEP-IRA: Lesser of 25% of compensation or $70,000

Health Savings Accounts (Triple Tax Advantage)

• HSA Individual: $4,300
• HSA Family: $8,550
• HSA Catch-up (55+): Additional $1,000

Prioritization Strategy Checklist

Step 1: Capture Free Money

• Contribute enough to 401(k) to get full employer match (typically 3-6% of salary)
• Check if employer offers "true-up" contributions at year-end
• Verify vesting schedule for employer contributions
• Set up automatic payroll deductions to ensure consistency

Step 2: Max Out HSA (If Eligible)

• Confirm you have a qualifying high-deductible health plan
• Max out HSA before IRA (better tax benefits)
• Save medical receipts for future tax-free reimbursement
• Invest HSA funds for long-term growth (not just cash)

Step 3: IRA Contributions

• Determine Roth vs. Traditional based on current tax bracket
• Check income limits for Roth IRA eligibility
• Consider backdoor Roth if over income limits
• Set up automatic monthly contributions ($583/month maxes it out)

Step 4: Return to 401(k)

• Increase contributions to reach $23,500 annual max
• Calculate percentage needed based on salary
• Adjust with raises and bonuses
• Consider Roth 401(k) option if available

Step 5: Additional Strategies

• After-tax 401(k) contributions if plan allows (mega backdoor Roth)
• Spousal IRA if married with non-working spouse
• Self-employed? Open SEP-IRA or Solo 401(k)
• 529 plans for education savings (some states offer tax deductions)

Timing and Deadline Checklist

Year-Round Tasks

• January: Review new contribution limits and adjust automatic contributions
• February: Set up IRA contributions for current year
• March: Make prior year IRA contributions before tax deadline
• April 15: Last day for prior year IRA and HSA contributions
• October: Review YTD contributions to ensure on track
• November: Calculate year-end true-up needs
• December: Make final adjustments, consider Roth conversions

Paycheck Optimization

• Calculate bi-weekly contribution needed: Annual limit ÷ 26
• Account for bonuses that may push you over limits
• Front-load contributions if financially able (more time in market)
• Leave room for full-year employer match if front-loading

Income and Eligibility Checkpoints

Roth IRA Income Limits (2025)

• Single: Phase-out begins at $146,000, complete at $161,000
• Married Filing Jointly: Phase-out begins at $230,000, complete at $240,000
• If over limits, execute backdoor Roth strategy
• Clear any existing traditional IRA balances before backdoor Roth

Traditional IRA Deductibility

• Check if covered by workplace retirement plan
• Single with workplace plan: Phase-out $77,000-$87,000
• Married with workplace plan: Phase-out $123,000-$143,000
• Consider non-deductible contributions for backdoor Roth

Advanced Maximization Strategies

Mega Backdoor Roth Checklist

• Verify plan allows after-tax contributions
• Check if in-service conversions are permitted
• Calculate room under $70,000 total contribution limit
• Set up automatic conversions to minimize taxes

Self-Employed Optimization

• Open Solo 401(k) before December 31 for current year
• Calculate maximum profit-sharing contribution (20% of net SE income)
• Consider defined benefit plan if high income (50+)
• Make employer contributions by tax filing deadline

Catch-Up Contribution Strategy (Age 50+)

• Add catch-up amounts to automatic contributions
• 401(k): Extra $7,500
• IRA: Extra $1,000
• SIMPLE IRA: Extra $3,500
• HSA (55+): Extra $1,000

Common Mistakes to Avoid

Contribution Errors

• Don't exceed annual limits (penalties apply)
• Don't forget to invest contributions (avoid cash drag)
• Don't stop 401(k) contributions early (miss employer match)
• Don't contribute to Roth IRA if over income limits

Timing Mistakes

• Don't wait until December to max out (may miss opportunities)
• Don't forget prior year IRA contributions (until April 15)
• Don't miss employer match due to maxing out too early
• Don't forget to restart contributions in January if stopped

Tracking and Monitoring Tools

Documentation Needed

• Create spreadsheet tracking all contributions
• Save all contribution confirmations
• Track employer match separately
• Monitor investment performance quarterly

Automation Checklist

• 401(k): Set up automatic annual increase (1-2%)
• IRA: Schedule monthly auto-transfers
• HSA: Automate payroll deductions
• Set calendar reminders for contribution deadlines

Year-End Optimization Checklist

November Review

• Calculate remaining contribution room
• Project year-end bonus impact
• Determine if Roth conversion makes sense
• Review beneficiaries on all accounts

December Actions

• Make final contribution adjustments
• Execute Roth conversions if applicable
• Harvest tax losses in taxable accounts
• Contribute to 529 plans for state tax deduction

Special Situations

Job Change Checklist

• Roll old 401(k) to IRA or new employer plan
• Verify contribution limits not exceeded across plans
• Update automatic contributions at new employer
• Review new employer match and vesting

High Income Earners

• Consider defined benefit plan
• Max out all available accounts
• Use backdoor and mega backdoor Roth strategies
• Explore deferred compensation plans

Married Couples

• Coordinate contributions for tax optimization
• Use spousal IRA if one spouse doesn't work
• Consider filing separately for student loan benefits
• Max out both HSAs if on separate plans

Quick Reference: Monthly Contribution Targets

To max out accounts with equal monthly contributions:

• 401(k): $1,958/month ($23,500 ÷ 12)
• 401(k) with catch-up: $2,583/month ($31,000 ÷ 12)
• IRA: $583/month ($7,000 ÷ 12)
• IRA with catch-up: $667/month ($8,000 ÷ 12)
• HSA Individual: $358/month ($4,300 ÷ 12)
• HSA Family: $712/month ($8,550 ÷ 12)

Action Items for Tomorrow

1. Log into all retirement accounts and note current balances
2. Calculate how much more you can contribute this year
3. Set up automatic increases for next year
4. Schedule annual review in your calendar
5. Share this checklist with your spouse/partner

Remember: Maximizing retirement contributions is one of the most powerful wealth-building strategies available. Every dollar you contribute reduces current taxes while building tax-advantaged wealth for the future. Even if you can't max out everything today, increasing contributions by just 1% annually makes a massive difference over time.