Craig Wear, CFP, breaks down 2025 retirement limits: 401(k) contributions max at $23,500 and Roth IRAs at $7,000 per year. He suggests low-cost index funds and ETFs, plus a backdoor Roth strategy if your income disqualifies you from regular contributions.
$23,500
$7,000
Just under $600 per month
Here's how much you can put into your Roth IRA this year. For 2025, the 401k limit went up to $23,500. The Roth IRA limit is still $7,000 a year, which is about just under $600 a month. But what should you invest in? Well, you got a lot of options, but a couple of the more favorite are number one is maybe index funds and exchange traded funds or ETFs. They're simple, they're low cost, they're diversified, and most of them are passive managed. Or you could use individual stocks that you really believe will still be thriving at retirement or for the next several years. So think Apple, Costco, Google, that sort of thing. But if you earn too much for a regular Roth ira, look into a backdoor Roth and you can get more information about that.
