2025 Retirement Plan Updates

IRA Contribution Limits for 2025

Good news (or bad news, depending on how you look at it): IRA contribution limits for 2025 are not changing.

• Maximum contribution: $7,000

• For taxpayers aged 50+: $8,000

Note: These limits are subject to income-based phase-out reductions, so be sure to check whether you qualify to contribute directly to a Roth IRA or need to use a backdoor strategy.

Increased Limits for Workplace Retirement Plans

If you participate in a workplace retirement plan (e.g., 401(k), 403(b), or 457), the contribution limits for 2025 are increasing by $500 to $23,500.

Take advantage of this bump by:

• Reviewing your payroll contributions.

• Adjusting your deferral rate for the new year to ensure you’re contributing the maximum amount.

Even small increases can have a big impact over time, thanks to compounding.

Other Changes

Other government accounts, like HSAs will also see a boost this year.

Final Thoughts

Whether you’re maximizing IRA contributions, harvesting tax losses, or upping your 401(k) contributions, these strategies are key to finishing the year strong and setting yourself up for a financially secure future.

If you’re just starting, focus on consistent contributions and diversification—the rest will follow.

What steps are you taking to close out 2024 and start 2025 on the right financial foot? Share your plans and let’s exchange ideas!