Financial advice that starts with a plan.
We help you do more with what you’ve earned.
Looking for 2026 figures? See our 2026 Important Numbers guide.
A few important tax, savings, and retirement planning updates are coming up in 2025. Feel free to download our PDF guide below.
I’ve also summarized the main topics you most likely want to know below.
Increased Retirement Plan Contribution Limits:
The employer retirement plan (401(k), 403(b), TSP) contribution limit increased to $23,500 in 2025 from $23,000 in 2024.
For those age 50+ before year’s end, you can also make a catch-up contribution of $7,500.
As a reminder, the $23,500 and catch-up are the employee “elective deferral” limit (pre-tax or Roth). The total contribution limit to defined contribution plans (401(k), 403(b), 457) for 2025 is much higher: $70,000 if you’re younger than 50 and $77,500 if you’re older.
That total limit is comprised of a combination of your tax-deferred contribution, any employer contributions, and any after-tax contributions you make to potentially implement a Mega Backdoor Roth strategy.
The biggest update to retirement planning numbers for 2025 is for those aged 60 to 63. You are now eligible for a new “super-catch-up contribution” or $11,250. In essence, instead of the normal $7,500 catch-up you get, you can save a little extra tax-deferred between the ages of 60 and 63.
An important note is that this new super-catch-up rule was part of the recent SECURE 2.0 Act. Not all employers have updated their retirement plans to accommodate super-catch-up contributions…so it’s worth checking with your plan provider to see if this will even be available to you.
IRA and Roth IRA account contribution limits will still be the same $7,000 (with a $1000 catch-up available for those age 50+ before years-end).
Health Savings Accounts (HSAs), the ultimate tax-advantaged accounts, increased their contribution limits to $4,300 for self-only and $8,550 for family coverage. Before the end of the year, a catch-up contribution of $1,000 can also be made to an HSA for those aged 55+.
2025 Tax Brackets:
The marginal tax rates will stay the same in 2025, but the dollar threshold ranges taxed at each bracket have been adjusted for inflation.
The Standard Deduction will also increase in 2025 to $30,000 for filing jointly and $15,000 for filing separately.
2025 Tax Brackets:
The marginal tax rates will stay the same in 2025, but the dollar threshold ranges taxed at each bracket have been adjusted for inflation.
The Standard Deduction will also increase in 2025 to $30,000 for filing jointly and $15,000 for filing separately.
Social Security’s Cost-of-Living-Adjustment (COLA) is 2.5% for 2025. Your income subject to Social Security taxes in 2025 increased to $176,100 for those still working.
The Annual Gift Tax Exclusion is increasing to $19,000 per person in 2025. As a reminder, this is what you can give any single person in 2025 without having to report anything to the IRS. Spouses can also “split gifts,” allowing for you as a couple to gift $38,000 to any person without reporting it.
Here’s to a great 2025!
