January 2025
Financial Planning

What’s New in 2025 – Retirement Account Contribution Limits

By Myra Alport, AFC®

2025 has launched! A new year means many things to each of us personally and professionally. At Copperwynd we take special notice of the updated retirement account contribution amounts and the new catch-up rules introduced by SECURE Act 2.0. These changes present significant opportunities for those of you who are aiming to maximize your retirement savings.

Brand new for 2025 is a Special Catch-Up Contribution limit for employees aged 60, 61, 62 and 63. If you fall into this age range you may now contribute an additional $11,250 instead of $7,500, making the maximum contribution to a 401(k), 403(b), 457 and the Thrift Saving Plan $34,750. For SIMPLE plans, the higher catch-up contribution limit for employees in this age group is $5,250.

A common question from retired clients is whether they can contribute to a Roth IRA. After all, Roth contributions are funded with after-tax monies, right? While there is no age limit for contributing to a Roth IRA, you must have taxable compensation equal to or greater than your contribution to a Roth IRA. This translates to earned income from part-time or consulting work or from self-employment. Note the Roth IRA contribution limits and related notes below.

If your workplace plan provides a Roth 401k option, please reach out to us for guidance so we can discuss your situation on a case-by-case basis.

Please take note of the updated chart below.
(Click on the Image to enlarge it.)

MARKET UPDATE
401(K) ALLOCATION

To download the January 2025 Newsletter: CLICK HERE

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