Every year, the maximum annual contributions you can make to different types of retirement plans are set by the IRS. For example, here are the limits for 2015.
What I’ve been told by my financial adviser is that there is no reason not to contribute the maximum allowable amount into my retirement plan every year. In order words, there is no such thing as contributing too much – up to the legal limit. The rationale for this is that retirement accounts are the single most tax-efficient way to save. If your employer matches any part of your contribution, that’s an added bonus.
How do you decide how much to contribute to your retirement account(s)?