Sponsor spotlight Plan your 2025 retirement contributions

With 2025 on the horizon, taxpayers are urged to review their retirement account contributions in light of substantial increases in limits driven by recent cost-of-living adjustments. Nancy Ekrem, a CPA, highlights that higher income phaseouts will enable more individuals to qualify for fully deductible contributions. The article stresses the importance of identifying the specific retirement savings plans currently in use and adjusting contributions to capitalize on these new limits. For those aged 50 and above, the opportunity to add catch-up contributions can significantly enhance retirement savings. Ekrem also notes the necessity of understanding income limits for traditional and Roth IRAs, which influence deductibility and participation.

As a proactive measure, readers are encouraged to consider setting up new accounts for spouses or dependents and to review their overall retirement planning status, including beneficiary designations. Additionally, the article suggests evaluating contributions to other tax-advantaged accounts, such as Flexible Spending Accounts and Health Savings Accounts. Overall, this timely advice offers a roadmap for maximizing retirement contributions and preparing for a financially secure future.