Did you know that only 15% of eligible savers take full advantage of contribution limits to reach their retirement goals? Don’t leave your future on the table—new opportunities in 2025, including Super Catch-Up Contributions, could help you stay ahead.
In this blog, Park City Wealth Advisors will explain what the super catch up contributions of 2025 could mean for you, as well as the contribution limits for other retirement accounts in the coming year.
What You Need to Know About The Super Catch Up Contributions in 2025
In 2025, the IRS will increase the limits for Super Catch-Up contributions to 401(k) plans, providing individuals over 50 with an opportunity to accelerate their retirement savings.
For those aged 50 to 59 and 64 and older, the maximum contribution will be $31,000, which includes the regular contribution limit of $23,000 plus an additional $8,000 catch-up contribution.
Individuals aged 60 to 63 will be able to contribute up to $34,750, which includes a $11,750 catch-up provision.
As retirement looms closer, the pressure to help that savings are sufficient can feel overwhelming. The Super Catch-Up provisions offer a way to ease some of that stress, allowing those in their 50s and 60s to put more away and take control of their retirement trajectory. For many, this is a chance to make up for years of missed savings or to supercharge their nest egg as they approach their golden years.
Other Contribution Limits for 2025
Now, let’s discuss the 2025 contribution limits for other various retirement accounts.
For 401(k) plans, the contribution limit will rise to $23,500, allowing workers to put more away for retirement.
Traditional and Roth IRAs will have a limit of $7,000, with an additional $1,000 catch-up contribution available for those aged 50 and older.
For self-employed individuals or small business owners, SEP IRAs will allow contributions up to the lesser of 25% of compensation or $70,000, offering significant potential for growth.
Additionally, SIMPLE IRAs will have a contribution limit of $16,500, with an extra $3,500 catch-up for those over 50.
Navigating 'Super Catch-Up' Contributions with PCWA
Navigating the new contribution limits for 2025 can be a strategic opportunity to maximize your retirement savings. Park City Wealth Advisors is here to guide you every step of the way.
Our retirement planning services include:
Tax-Efficient Retirement Savings
The firm focuses on strategies that minimize taxes both before and during retirement, helping clients maximize the benefits of tax-deferred growth and plan for future tax liabilities.
Asset Allocation & Diversification
Park City Wealth Advisors creates a diversified investment portfolio that matches the client’s time horizon and risk profile, aiming for steady growth and a balanced approach to market volatility.
Catch-Up Contributions & Retirement Account Maximization
As clients approach retirement age, Park City Wealth Advisors advises on taking full advantage of catch-up contributions, including 401(k)s and IRAs, to increase savings and boost retirement readiness.
Retirement Income Planning
The firm helps clients create a sustainable income strategy for retirement, addressing factors like withdrawal rates, pension planning, annuities, and other sources of retirement income.
Estate & Legacy Planning
In addition to growing wealth, Park City Wealth Advisors works with clients on estate planning strategies to help their wealth be transferred according to their wishes, minimizing estate taxes and preserving their legacy for future generations.
Plan for Retirement with Park City Wealth Advisors
With the increased contribution limits for 401(k) plans, IRAs, and other retirement accounts, it’s important to align your contributions with your long-term financial goals. Whether you are looking to catch up on savings or fine-tune your strategy to make the most of the new limits, Park City Wealth Advisors can help you navigate these changes with personalized advice tailored to your unique situation.
Let us help you plan for a retirement that’s not only financially sound but aligned with your aspirations.
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