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2025
Contribution Limits, Tax Brackets, and Important Updates
Staying updated on the latest financial figures is essential for effective planning and compliance. Whether you’re navigating tax brackets, maximizing retirement contributions, or understanding estate tax exemptions, having accurate, up-to-date information is key to making informed decisions. This page serves as your go-to resource for the most current financial data. It includes contribution limits, tax rates, and other critical figures. Updated annually, it provides everything you need to stay on top of changes and help optimize your financial strategy.
Table of Contents
2025 Contribution Limits
Keeping up with contribution limits is essential to maximizing your savings. For example, employer-sponsored plans like 401ks or SIMPLE IRAs allow you to set aside pre-tax dollars. Many plans also offer an added bonus through employer matching, making them even more valuable.
Additionally, Individual Retirement Accounts (IRAs) provide more ways to save for the future. You can choose tax-deferred growth with a Traditional IRA or enjoy tax-free withdrawals with a Roth IRA.
Furthermore, don’t overlook Health Savings Accounts (HSAs). These accounts are a smart option for covering medical expenses while taking advantage of tax benefits. By knowing your contribution limits, you can plan effectively and stay on track to meet your financial goals each year.
Below are the limits for this year:
| Employer Sponsored Retirement Plans | 2024 Limit | 2025 Limit |
|---|---|---|
|
401k, 403b, 457b, Roth 401k Employee Contribution Limit |
$23,000 |
$23,500 |
|
Catch-up Contribution for Individuals Ages 50-59 |
$7,500 |
$7,500 |
|
New in 2025- Enhanced Catch-up Contribution for Ages 60-63 |
$7,500 |
$11,250 |
|
SIMPLE Plans |
$16,000 |
$16,500 |
|
SIMPLE Plans Age 50 and Over |
$3,500 |
$3,500 |
|
401(a) & 415(c) Total Contributions |
$69,000 |
$70,000 |
|
Annual Compensation Limit for Qualified Retirement Plans |
$345,000 |
$350,000 |
| Individual Retirement Plans - IRA | 2024 Limit | 2025 Limit |
|---|---|---|
|
Traditional IRA |
$7,000 |
$7,000 |
|
Catch-up Contribution for Individuals 50 and Over |
$1,000 |
$1,000 |
|
Roth (There are income limits) |
$7,000 |
$7,000 |
|
Backdoor Roth / Roth Conversion (There are no income limits) |
N/A |
N/A |
| Health Savings Plans - HSA | Max Deductible Contribution | Expense Limits | Minimum Annual Deductible |
|---|---|---|---|
|
Individuals |
$4,300 |
$8,300 |
$1,650 |
|
Families |
$8,550 |
$16,600 |
$3,300 |
|
Catch-up for 55 and older |
$1,000 |
|
|
Want to dig deeper? We’ve got you covered! Click on the articles below to explore the ins and outs of different retirement and various savings plans.
Whether you’re curious about contribution limits, eligibility rules, or how to make the most of tax advantages, these resources will help you navigate the details. From employer-sponsored plans to individual retirement accounts and health savings accounts, we’ve broken it all down to make financial planning clearer and easier.
- DIFFERENCES BETWEEN AN IRA AND 401K
- ROTH 401K OR TRADITIONAL 401K?
- 401K DO’S AND DON’TS: SMART STRATEGIES AS YOU NEAR RETIREMENT
- UNDERSTANDING 401(A) and 415(C)
- 10 MISTAKES TO AVOID WITH YOUR ROTH IRA
- THE POWER OF CATCH-UP CONTRIBUTIONS
- STREAMLINING RETIREMENT: INSIGHTS INTO RETIREMENT ACCOUNT CONSOLIDATION
- BACKDOOR ROTH: FROM TAX BURDEN TO TAX-FREE GROWTH
- RETIREMENT PLANNING FOR SELF EMPLOYED
- THE HEALTH SAVINGS ACCOUNT: NAVIGATING HEALTHCARE COSTS
2025 Tax Rate Schedules
Understanding the tax rate schedule is a key part of smart financial planning. The IRS uses a progressive tax system, which means your income is taxed in brackets—higher rates apply only to the portion of your income that falls within each bracket. This setup allows you to pay different tax rates on different portions of your income, rather than one flat rate on everything.
Staying up-to-date on the current tax brackets can help you estimate your tax liability, plan for deductions, and even make strategic decisions about things like retirement contributions or year-end giving. Knowing where you stand in the tax schedule is a small step that can make a big difference in keeping more of what you earn.
Whether you are Single, Married Filing Jointly (MFJ), Head of Household (HOH), Married Filing Separately (MFS,) or looking into Estate and Trusts, use the table below to find your tax bracket.
| Taxable Income | Tax Bracket (Margianl Tax Rate) |
|---|---|
|
$0 – $11,925 |
10% |
|
$11,926 – $48,475 |
12% |
|
$48,476 – $103,350 |
22% |
|
$103,351 – $197,300 |
24% |
|
$197,301 – $250,525 |
32% |
|
$250,526 – $626,350 |
35% |
|
Over $626,350 |
37% |
| Taxable Income | Tax Bracket (Margianl Tax Rate) |
|---|---|
|
$0 – $23,850 |
10% |
|
$23,851 – $96,950 |
12% |
|
$96,951 – $206,700 |
22% |
|
$206,701 – $394,600 |
24% |
|
$394,601 – $501,050 |
32% |
|
$501,051 – $751,050 |
35% |
|
Over $751,600 |
37% |
| Taxable Income | Tax Bracket (Margianl Tax Rate) |
|---|---|
|
$0 – $17,000 |
10% |
|
$17,001 – $64,850 |
12% |
|
$64,851 – $103,350 |
22% |
|
$103,351 – $197,300 |
24% |
|
$197,301 – $250,500 |
32% |
|
$250,501 – $626,350 |
35% |
|
Over $626,350 |
37% |
| Taxable Income | Tax Bracket (Margianl Tax Rate) |
|---|---|
|
$0 – $11,925 |
10% |
|
$11,926 – $48,475 |
12% |
|
$48,476 – $103,350 |
22% |
|
$103,351 – $197,300 |
24% |
|
$197,301 – $250,525 |
32% |
|
$250,526 – $375,800 |
35% |
|
Over $375,800 |
37% |
| Taxable Income | Tax Bracket (Margianl Tax Rate) |
|---|---|
|
$0 – $3,150 |
10% |
|
$3,151 – $11,450 |
24% |
|
$11,451 – $15,650 |
35% |
|
Over $15,650 |
37% |
2025 Deductions & Credits
Deductions and credits are powerful tools to help reduce your tax liability and keep more money in your pocket. These deductions lower your taxable income, whether through standard deductions or itemizing expenses like mortgage interest, state taxes, and charitable contributions.
On the other hand, Tax Credits offer a direct dollar-for-dollar reduction in the taxes you owe. Think child tax credits, education credits, or energy-efficient home improvement credits. Understanding the difference and how to qualify for these benefits can make a significant impact on your financial plan.
Here are some resources to help you navigate deductions and credits with ease:
| Standard Deductions | 2024 Limit | 2025 Limit |
|---|---|---|
|
Married, Filing Jointly, and Qualifying Widows |
$29,200 |
$30,000 |
|
Single or Married Filing Separately |
$14,600 |
$15,000 |
|
Head of Household |
$21,900 |
$22,500 |
|
65 Years or Older or Blind – Additional Deduction |
$1,550 |
$2,000 |
| Child Tax Credit | 2024 Limit | 2025 Limit |
|---|---|---|
|
Credit per Child Under 17 |
$2,000 ($1,700 Refundable) |
$2,000 ($1,700 Refundable) |
|
Income Phase Out Begins At Adjusted Gross Income of |
$200K & $400K for Joint Filers |
$200K & $400K for Joint Filers |
| Gift & Estate Tax Credits | 2024 Limit | 2025 Limit |
|---|---|---|
|
Annual Gift Tax Exclusion |
$18,000 per recipient |
$19,000 per recipient |
|
Lifetime Estate and Gift Tax Exemption |
$13.61 million per individual |
$13.99 million per individual |
| Long Term Care Deductible | 2025 Amount of LTC That Qaulifies as Medical Expenses |
|---|---|
|
Age 40 or Less |
$480 |
|
41 to 50 |
$900 |
|
51 to 60 |
$1,800 |
|
61 to 70 |
$4,810 |
|
Over 70 |
$6,020 |
2025 Social Secuirty & Medicare
Social Security and Medicare may not be the foundation of a high-net-worth individual’s financial plan, but they remain valuable components of a well-rounded strategy. Social Security provides a predictable income stream in retirement, which can complement other investment and estate planning efforts. On the other hand, Medicare offers access to comprehensive healthcare coverage, reducing the need to self-fund significant medical expenses.
For those with substantial assets, understanding how these programs integrate with tax planning, income strategies, and legacy goals can help maximize their benefits and free up resources for other priorities. Even with a robust portfolio, leveraging these programs wisely is a smart way to optimize your overall financial picture.
Below are some basics, however, if you’d like to get a detailed guide and cheatsheet check out our FREE Social Security and Medicare Guide here.
| Social Security Benefits & Taxes | 2025 Amount |
|---|---|
|
Estimated monthly benefit if turning full retirement age this year |
$4,018 |
|
Cost of Living Adjustment |
2.5% |
|
Employee/Employer SS Taxes |
6.2% on earnings up to $176,100 |
|
Self Employed SS Taxes |
12.4% on earnings up to $176,100 |
| Medicare Deductibles & Taxes | 2025 Amount |
|---|---|
|
First 60 day of Hospitalization – Part A Deductible (Inpatient Services) |
$1,676 |
|
61-90 days of Hospitalization – Part A Deductible |
$419/day |
|
More than 90 days of Hospitalization – Part A Deductible |
$838/day |
|
Part B Deductible |
$257 |
|
Employee/Employer Medicare Taxes |
1.45% on all earnings |
|
Self Employed Medicare Taxes |
2.9% on all earnings |
2025 Tax Deadlines
Staying on top of tax deadlines is essential for avoiding penalties and keeping your financial plans on track. For instance, key deadlines include those for filing individual income tax returns, submitting quarterly estimated payments, and meeting business tax obligations like issuing tax forms and filing corporate returns.
Additionally, if needed, you can request an extension to file; however, keep in mind that an extension to file doesn’t mean an extension to pay. Above all, by staying organized and aware of the important deadlines, you can ensure a smooth tax season and avoid unnecessary stress.
Here are some important dates to remember:
January 15:
Estimated tax payments due for the fourth quarter of the previous year.
January 31:
Due date for employers to send W-2 forms.
Deadline to send certain 1099 tax documents.
March 15:
Taxes due for partnerships, S corporations, or multi-member LLCs taxed as partnerships.
April 1:
Due date to take the 2024 required minimum distribution from your retirement account if you turned 73 during the previous year.
April 15:
Tax filing deadline, or request an extension to October 15.
Estimated tax payments due for the first quarter.
Last day to contribute to Roth or Traditional IRA, HSA, Keogh or SEP for 2024.
Taxes due for C corporations, sole proprietors, single-member LLCs, and LLCs taxed as corporations.
June 16:
Estimated tax payments due for the second quarter.
September 15:
Estimated tax payments due for the third quarter
October 15:
Tax returns for those who filed an extension are due.
December 31:
Last day to pay expenses for deductions.
Final day to complete transactions for capital gains/losses.
Last day to establish and fund a solo 401k.
Correct excess contributions to IRAs and qualified plans to avoid penalty.
Next Steps
Staying informed about the latest financial figures is a vital part of effective planning and achieving your financial goals. From tax brackets to contribution limits and estate tax exemptions, having access to accurate, up-to-date information allows you to make informed decisions and take full advantage of available opportunities.
Here is how to keep the momentum going:
- Use this resource as a guide to keep you on track – be sure to bookmark this page as it will be updated regularly.
- Schedule a call with us: Whether you have questions about retirement planning, tax strategies, or estate planning, our team of CERTIFIED FINANCIAL PLANNERs™ are here to provide personalized guidance tailored to your unique goals. Take the next step and schedule a call with us today!
