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After completing their tax returns, some will find they didn't pay enough during 2024. Workplace retirement plans, like 401(k)s, require you to make all your contributions by the end of the year ...
In 2025, 401(k)s have a contribution limit of $23,500 for adults under 50, while IRAs limit these workers to just $7,000 per year. Exceeding these limits brings tax penalties, so it's not worth it.