2025 Retirement Limits—Are You Taking Full Advantage?
The IRS just released the 2025 retirement contribution limits, and there's good news: you can save more tax-deferred (or tax-free) dollars this year. Even better news? You don't need to memorize these rules—that's our job.
What Changed for 2025
Contribution limits increased across the board for 401(k)s, IRAs, and other retirement accounts. But here's what most people miss: it's not just about the limits—it's about the long-term strategy in how you selectively use these accounts to build “pots” of taxable, tax-deferred and tax-free wealth.
Enhanced Catch-Up for Ages 60-63
Thanks to SECURE 2.0 legislation, if you're between 60 and 63, you can now contribute more to your 401(k) than ever before. This "super catch-up" provision is brand new for 2025 and creates an opportunity to accelerate retirement savings during your peak earning years.
Higher Income Thresholds for Roth IRA Contributions
Roth IRA income limits also increased since last year. Whether a Roth IRA contribution makes sense for you, or a partial Roth conversion, a Backdoor Roth (or a Mega Backdoor Roth…)… this all depends on your complete financial picture—not just your income right now.
Why It Matters (And Why Going DIY Can Be Costly)
Most people fall in one of three camps:
Under-contributing to the accounts available to them because they don't realize limits have increased, they’ve never gotten around to it, or years ago they contributed something to some account without regularly revisiting their actual contributions over time
Maxing out 401(k) contributions but ignoring the IRA side of things, including the potential for Spousal IRAs. Alternatively, some people max out their 401(k)s and think that automatically means they’re saving enough for retirement (without a clear understanding of what they actually need…)
Missing strategic opportunities like the age 50+ catch-up contribution, the age 60-63 special catch-up provision or looking regularly at strategic tax-efficient Roth conversions over time
There’s a huge difference between simply "maxing out" your 401(k) and implementing a coordinated retirement savings strategy, especially one that takes likely lifetime taxes into consideration.
The Wealth Collective’s Approach
We don't just track IRS rule changes—we proactively apply them to your specific situation:
✓ Optimizing your contribution strategy across all accounts (401k, IRA, Roth, HSA, taxable)
✓ Coordinating your tax situation to minimize lifetime taxes, not just current-year taxes
✓ Identifying opportunities you didn't know existed (like the age 60-63 super catch-up)
✓ Avoiding costly mistakes like excess contributions, missed deadlines, missed opportunities or tax traps
✓ Adjusting your strategy as life changes (promotions, business sales, inheritances, career transitions, health events…)
Let Us Handle the Complexity
You shouldn't need to track IRS changes or to decode phase-out ranges. That's what we do—so you can focus on your career, on building your business, and on your life and kids.
If you're wondering whether you're optimizing your retirement savings strategy for 2025, let's talk.
Ready to maximize your 2025 retirement strategy? Contact The Wealth Collective to review your current contributions and identify opportunities you may be missing.
Take advantage of new higher retirement limits and update your contributions for 2025!
