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VIDEO: 2025 IRS Contribution Limit Changes Thumbnail

VIDEO: 2025 IRS Contribution Limit Changes

Retirement Funding

by Leah Woodly

🚨 2025 IRS Contribution Limits Are Here! 🚨 

Are you ready to take advantage of the new savings opportunities? The IRS has just announced the contribution limits for 2025, and there are some exciting changes that could help you save more for retirement and healthcare. Here’s a quick overview of the updates and what they mean for your financial strategy:

Key Updates for 2025:

1. 401(k) Contribution Limits

  • The contribution limit for 401(k) plans has increased to $23,500 (up from $22,500 in 2024).
  • If you’re age 50 or older, you can make an additional catch-up contribution of $7,500, bringing your total to $31,000.

2. IRA Contribution Limits

  • The annual contribution limit for traditional and Roth IRAs has risen to $7,000 (up from $6,500 in 2024).
  • The catch-up contribution for those age 50 or older remains at $1,000, allowing a total contribution of $8,000.

3. Health Savings Account (HSA) Contribution Limits

  • Individuals with self-only coverage can now contribute up to $4,150 (up from $3,850 in 2024).
  • Family coverage contributions have increased to $8,300 (up from $7,750 in 2024).
  • The catch-up contribution for individuals aged 55 and older remains at $1,000.

Why These Changes Matter:

Higher contribution limits mean more opportunities to save in tax-advantaged accounts. These adjustments help you keep up with inflation and stay on track for your financial goals.

How to Adjust Your Strategy:

  • Maximize Your Contributions: Review your budget and adjust your savings to meet the new limits.
  • Take Advantage of Catch-Up Contributions: If you’re over 50 (or 55 for HSAs), make the most of these extra savings opportunities.
  • Plan for Tax Savings: Increasing contributions can reduce your taxable income and potentially lower your tax bill.

Watch the Video: 

In the video below, Leah breaks down these updates and share tips for maximizing your contributions in 2025.

This material is intended for educational purposes only. You should always consult a financial, tax, or legal professional familiar with your unique circumstances before making any financial decisions. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns. Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost. Dorval & Chorne Financial Advisors is a registered investment adviser with the SEC. Registration of an investment adviser does not imply a certain level of skill or training.