New Year – New Information to Know – What’s New in 2o25
401(k) and IRA contribution information to know in 2025 so you can make your adjustments early.
Super Catch-Up Contribution in 401(k)’s
In 2025, the rules of catch-up contributions in 401(k)s will change for the better for people between the ages of 60 to 63. If you are in that age range, your catch-up contribution will increase to $11,250. It is being referred to as the Super Catch-Up contribution.
That is not in addition to the standard $7,500 catch-up – it is in place of $7,500. Your total allowable 401(k) contribution for 2025 is $34,750. It is not clear if this is a one year only opportunity or a permanent change to the catch-up provision. There will be more to come and we will keep you updated.
If you are between the ages of 60 to 63 in 2025, you may consider adjusting your payroll deferrals to take advantage of the extra $3,750 allowed. Need some guidance on your elected deferrals work with a financial advisor who can help you make the best decision. To read more about setting goals as you head into retirement check out our recent blog: Retirement Planning Setting Goals.
IRA Contribution Limits
In 2025 what is NOT new is the contribution limit for IRA’s and Roth IRA’s. The IRS did not increase the amount allowed. It remains the same as in 2024 at $7,000 with a $1,000 catch-up for those over the age of 50.
HSA Limits
There are new numbers to know and plan for regarding the contribution limits to Health Savings Accounts. These limits were increased for individuals and families. The individual contribution amount is $4,300 (up from $4,150 in 2024) and the family amount is $8,550 (up from $8,300 in 2024). The catch-up provision for those over the age of 55 remains at $1,000.
Start the New Year off right and adjust your savings rates accordingly. At Wealth Planning Corporation we are here to simplify your financial complexities and guide individuals and families into and through retirement. If we can be of assistance, please do not hesitate to schedule a complimentary discovery meeting.
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