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Saving for retirement will get a modest boost in 2025 thanks to higher contribution limits and the phase-in of provisions stemming from the Secure 2.0 Act, which became law at the end of 2023.
The standard 401(k) contribution limits for 2025 are going up. ... A big change is coming in 2025. Thanks to the SECURE 2.0 Act, some retirement savers are getting an extra boost. If you're age 60 ...
Under SECURE 2.0, employees aged 60, 61, 62, and 63 will see an even higher catch-up limit. For 2025, this boosted limit will be $11,250 instead of $7,500. ... Although the 401(k) contribution ...
On December 20, 2022, “Division T - Secure 2.0 Act of 2022” was added to H.R. 2617 (Consolidated Appropriations Act, 2023), incorporating H.R. 2954 into the omnibus bill. The omnibus bill, including Division T, passed the Senate On December 22nd, passed the House on December 23rd, and signed into law by President Joe Biden on December 29, 2022.
A SECURE 2.0 Act rule change that went into effect Jan. 1 now enables adults who will be between the ages of 60 and 63 by the end of 2025 to make an even larger catch-up contribution.
2025 SECURE 2.0 Act 401(k) Plan Changes. The following changes also apply to 403(b) plans. Take a look. 1. Automatic Enrollment for New 401(k) Plans ... Suppose the 2024 contribution limit remains ...
The SECURE Act is estimated to cost $15.7 billion. It is primarily funded through a change to "stretch" IRAs. In the past, non-spouse beneficiaries who inherit IRAs could spread disbursements from the IRA over their lifetime. Under the SECURE Act, disbursements must be collected and taxed within 10 years of the original account holder's death. [8]
Roth IRA contribution limits are significantly lower than 401(k) contribution limits. For tax years 2016 and 2017, individuals could contribute no more than $5,500 per year to a Roth IRA if under age 50, and $6,500 if age 50 or older. For tax years 2019, 2020, and 2021, contributions up to $6,000 are permitted under age 50, or $7,000 if 50 or ...