Changes in Retirement Savings for 2025: A Comprehensive Guide

ARTICLE | December 19, 2024

Authored by Vasquez + Company

The IRS has announced adjustments to retirement plan contribution limits for 2025, reflecting recent inflation trends. While some plans will see increases, others may not benefit from the higher amounts seen in previous years. This article provides a comprehensive overview of these changes, including new contribution limits, phase-out ranges for traditional and Roth IRAs, modifications to the Social Security earnings test, and key points to help you plan effectively for the coming year:

• Increased Contribution Limits: 401(k) and 403(b) plans will allow up to $23,500 (up from $23,000), with an additional catch-up amount for those aged 60-63 at $11,250.
• IRA Limits: Traditional and Roth IRAs remain at $7,000, but the phase-out ranges have adjusted.
• Social Security Earnings Test: The earnings limit for younger retirees will increase to $23,400, and full retirement age limit to $62,160.
• Savers Credit: Income limits for the saver's credit are also on the rise for 2025.

Ensure you're informed to make the most of your retirement planning in 2025. Read the full article here. 

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