IRS Announces 2025 Tax and Retirement Changes

The IRS has announced several tax and retirement savings adjustments for 2025, including an increase in the standard deduction and 401(k) contribution limits. Single taxpayers can now deduct $15,000, while married couples filing jointly can deduct $30,000, helping offset inflation impacts. The 401(k) contribution limit has risen to $23,500, with a special catch-up provision for those aged 60-63, allowing up to $11,250 in additional contributions. IRA contribution limits remain at $7,000, with catch-up contributions for those over 50 staying at $1,000, although income phase-out ranges for IRA and Roth IRA contributions have increased. These changes, alongside a 2.5% cost-of-living increase for Social Security benefits, aim to provide American workers and retirees with more financial flexibility in the coming year.