2025 401K and Roth Changes

Early Retirement Withdrawals Image

Let’s talk about something exciting – you’re getting more room to save for retirement in 2025! Whether you’re just starting your retirement journey or you’re already building your nest egg, these changes mean more opportunities to secure your future. Let’s break down what’s new in a way that makes sense.

More Space to Save in Your 401(k)

First, the news that affects most of us – the 401(k) contribution limit is going up. In 2025, you’ll be able to save up to $23,500 in your 401(k), which is $500 more than in 2024. This applies whether you have a traditional 401(k), 403(b), 457 plan, or the federal Thrift Savings Plan.

Extra catch-up options for experienced savers:

  • If you’re 50 or older, you can still add an extra $7,500 to your retirement savings.
  • And if you’re between 60 and 63, you get an even bigger opportunity – you can add $11,250 extra to your savings.a

Roth IRA Changes: More Flexibility for More People

Good news if you love the tax-free growth potential of Roth IRAs. More people can now contribute thanks to higher income limits:

  • Single or head of household? You can fully contribute if you make under $150,000, with reduced amounts up to $165,000
  • Married filing jointly? You’re good to go up to $236,000, with partial contributions up to $246,000

What This Means for You

Take a moment to think about how these changes might help you reach your retirement goals:

  • Could you increase your 401(k) contributions to take advantage of the higher limits?
  • If you’re over 50, are you making the most of those catch-up contributions?
  • Might you now qualify for Roth IRA contributions with the new income limits?

Remember, even small increases in your retirement savings can make a big difference over time. 

Need help figuring out how to make the most of these new opportunities? We’re here to help you create a retirement saving strategy that works for your unique situation. Let’s talk about making 2025 your best saving year yet!

This blog post is for informational purposes only and does not constitute legal or financial advice. Always consult with qualified professionals about your specific situation.

Related Insights