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Feeling late to FI? If the answer to that question is yes, and it’s because you waited longer than some to start investing, there are a few foundational habits you can lean into now to maximize your journey to financial independence. The one we focus on today is consistent contributions to your investment accounts, especially any retirement accounts you have available to you.

 

While time in the market is always more important than timing the market, when you’re setting off on this journey later than some, you may not have as much time in the market as you’d prefer. Please don’t let that deter you, though –  it’s helpful to lean into the areas of personal finance that can hopefully afford you the most growth over the time you have left until your determined FI date.

 

Assuming the rest of your foundation is solidly in place (minimal, if any, debt outside of your mortgage, an in-tuned understanding of monthly and annual cash flow, and the mindset to support these habits), leaning into contributing to your investments can be a great way to build wealth. 

 

Here’s some great news for those feeling late to FI: once you reach the age of 50 you are eligible to contribute even more to your retirement accounts whether it’s an IRA or a workplace retirement. Here’s a quick breakdown of the numbers for 2025. If you’re contributing to a workplace retirement account, be sure to check with your employer to see if there are any special provisions or restrictions.

IRS Contribution Limits for Retirement Accounts in 2025

Source: https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000

 

Investment Vehicle

Regular Contribution 2025

Catch-Up Contribution

Total Contribution for 2025

Age at which you’re eligible for a catch-up contribution

IRA

(Traditional and Roth)

$7,000

$1,000

$8,000

Age 50 

*catch-up contribution will be indexed for inflation beginning in 2026

Workplace Retirement Accounts

Employee Elective Deferral Max – 2025

Catch-Up Contribution

Total Employee Elective Deferral Contribution for 2025

Age at which you’re eligible for a catch-up contribution

401k, 403(b), 457, TSP

$23,500

$7,500

$31,000

Age 50

$23,500

$11,250

$34,750

Age 60, 61, 62, 63

The special catch-up contribution of $11,250 is ONLY for those ages 60-63. Once you’re 64 your catch-up contribution max goes back to $7,500

 

A few notes about catch-up contributions:

 

  1. For workplace retirement accounts, catch-up contributions only apply to employee elective deferrals, not employer contributions.

  2. Because of #1, SEP IRAs are not eligible for catch-up contributions since it’s only the employer, not the employee, that makes contributions to this type of account.

  3. 457 plans MAY have a special catch-up contribution that applies to your last 3 years of work prior to retirement, based on retirement age as outlined in the summary plan description through your employer. See your employer for details.

 

Mid-year is the perfect time to check in on your retirement account contributions for 2025. While you generally have until tax-filing deadline the following year to make a current year contribution, it’s always a good idea to take the pulse of your contributions to-date for 2025 about this time of year.

 

And if you’re contributing to an employer sponsored retirement plan, don’t forget to check in on how much your employer has contributed this year!


If your cash flow supports it, and you determine you’re not reaching your investment contribution goal yet for this year, now’s a great time to increase it! Taking control of the controllable helps you start to reduce the BS that gets in your way of achieving FI when you feel you’re a little behind. So keep checking in with yourself about what you can most control an lean into those actions.