As 2024 winds down, the IRS has released updated tax brackets and retirement contribution limits for the upcoming year. The current tax regulations will sunset at the end of 2025, which will bring changes to the forefront. The tax codes and contribution limits are complex in nature. We encourage your questions to make sure you get the most out of your investments.
Notable 2025 tax code updates:
Standard Deduction – increased to $15,000 for single filers and $30,000 for married couples filing jointly.
Tax Brackets – maintained all 2024 tax bracket rates, inflation adjusted income thresholds.
Annual Gift Exclusion – increased gift exemption to $19,000 per recipient.
Retirement Plan Contribution Limits:
401(k), 403(b), 457 Contribution limits – increased to $23,500 per year.
Catch Up Contributions (age 50-59) – additional $7,500 or $31,000 total.
Catch Up Contributions (age 60-63) – additional $11,250 or $34,750 total.
IRA Contribution Limits – remains unchanged at $7,000 per year.
Catch Up Contributions (age 50 & greater) – additional $1,000 or $8,000 total.
Roth IRA Contribution Limits – remains unchanged at $7,000 per year, subject to income thresholds.
From all of us at Katahdin, we wish you a pleasant change of seasons as we welcome winter. Please reach out with any questions and thoughts as we look toward to the end of the year.
Best,
Garrett
Click bullet points below to review IRS website: