You could have the best retirement plan to date, and it might still end up with flaws a couple of years from now just because the rules are always changing. That’s why we’re here to bring you up to speed every time there are crucial updates you need to know! Today, Maggi Tax Tampa has every retirement rule update for 2025 so you can optimize your retirement plan accordingly. Need help adjusting your plan? Schedule a consultation with our team of expert financial advisors today!
The 401(K) Reaches New Limits and Introduces “Enhanced Catch-Up” For 2025
Most income earners have a 401(K) for easy passive savings as they earn their paychecks. This means there’s a good chance that this particular update will apply to you as well. Contribution limits to 401(K)s have increased by $500 for 2025. If you consistently max out your contributions for increased retirement savings, this is great news for you! An extra few hundred a year will compound interest by the time you retire, so be sure to capitalize on this increased contribution limit.
The IRS is also starting a new “Enhanced Catch-Up” program in 2025 that allows people between the ages of 60-63 to contribute a lump sum of up to $11,250 this year to make up for any missed opportunities for retirement savings in previous years. It really is never too late to save for retirement, even if that time is just around the corner!
2025 Sees Slight Contribution Changes to IRAs
Those who contribute to IRAs or Roth IRAs will have a little more leeway in 2025 with increased phase-out limits to align with rising inflation:
● Single-file phase-outs increased to $150-$165k
● Married-filing-jointly phase-outs increased to $236-$246k
These increased phase-out limits will allow more people to receive tax benefits before being considered too high-income to qualify for them.
Like 401(K)s, IRA contributions have also increased by $500 for 2025. If you hold both types of retirement savings accounts, this gives you double the opportunity to increase your retirement savings over time!
Learn more > 6 Strategies For a Secure Retirement In 2025
The IRS Is Cracking Down On RMDs For Inherited IRAs Starting In 2025
People who inherit retirement savings accounts already tend to make many mistakes when handling their newfound earnings, and these mistakes will become more costly starting in 2025.
Inherited IRAs require that you take RMDs, and failing to take your share will cost you 25% of the amount in penalties for 2025. If you’ve inherited an IRA, you should learn about the “10-Year Rule” and relief periods for RMDs missed in previous years to help you out in this case. Schedule a consultation with a professional tax advisor and read our in-depth guide covering mistakes to avoid with inherited IRAs.
Stay On Top of the Changes By Meeting With Your Trusted Advisors at Maggi Tax!
The tax scene changes every year, and Maggi Tax Tampa is here to make sure you’re up to date at all times! Call us today at (727) 799-1701 to schedule a consultation for your pre-retirement prep and exit plan in a way that maximizes your tax advantages. We cover everything from tax advising to retirement planning for comprehensive financial services you can count on!
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