As we move through November, which is National Adoption Month, we are sharing both practical financial updates and personal insights. The IRS has announced several important changes to retirement contribution limits for 2025, including a special new catch-up provision for those ages 60-63.
This month's newsletter includes details about these retirement updates and reflects on the financial planning aspects of adoption - a topic I know firsthand through my family's own adoption experiences. Our goal is to support you through various life stages and financial decisions, from retirement planning to growing your family.
We remain committed to supporting your financial goals and life milestones.
Yours truly,
2025 Updates: Higher 401(k) Limits & New Catch-Up Options for Ages 60-63
The IRS has announced increased retirement contribution limits for 2025:
The standard 401(k) contribution limit will increase to $23,500, up $500 from 2024.
The standard catch-up provision remains unchanged at $7,500.
A new feature starts in 2025: employees aged 60-63 have a higher catch-up limit of $11,250, compared to $7,500 for those 50 and older. However, employers will need to update their plans to allow these enhanced catch-up contributions.
For Individual Retirement Accounts (IRAs), the basic contribution limit remains at $7,000, with an additional $1,000 catch-up contribution available for those 50 and older.
The IRS has also adjusted income limits for IRA and Roth IRA contributions. This includes higher phase-out ranges for deductible contributions and Roth IRA eligibility.
National Adoption Month: Financial Considerations and Resources
Are you considering growing your family through adoption? As someone who has experienced this journey firsthand, I know how overwhelming it can be. From the various routes (foster-to-adopt, private, international) to the costs involved pre and post-adoption, there are many factors to weigh. In my latest blog post, I share some insights and resources to help you plan for the financial aspects of this life-changing decision.
Financial Advice is offered through Certus Wealth Management LLC, a Registered Investment Adviser.
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This material prepared by Certus Wealth Management, LLC (“Certus Wealth”) is for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Opinions expressed by Certus Wealth are based on economic or market conditions at the time this material was written. Economies and markets fluctuate. Actual economic or market events may turn out differently than anticipated. Facts presented have been obtained from sources believed to be reliable. Certus Wealth, however, cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Certus Wealth does not provide tax or legal advice, and nothing contained in these materials should be taken as tax or legal advice.
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