Trump Donor Reveals How Biden-Harris Regulations are Hurting Americans’ Retirement Funds on “The Bottom Line”
It’s officially 2025, and it’s a good time to reassess your retirement planning. The Internal Revenue Service (IRS) recently increased the amount that individuals can contribute to their 401(k) and other retirement plans to account for inflation. The IRS reviews tax thresholds and limitations for various retirement accounts each year and considers making a cost-of-living adjustment based on the impact of inflation since the previous change occurred.
The IRS increased the annual contribution limit for 401(k) plans by $500 from the current limit of $23,000 in 2024 to $23,500 in 2025. The same increase applies to several other retirement plans, including 403(b) retirement plans, governmental 457 plans, and the federal government’s Thrift Savings Plan.
The IRS also held the IRA annual contribution limits constant from 2024 to 2025 at $7,000. It’s maintaining the IRA catch-up contribution limit for individuals aged 50 and over at $1,000 for 2025. The catch-up contribution limit that applies to employees aged 50 and up enrolled in most 401(k), 403(b), governmental 457 plans, and Thrift Savings Plan will remain at $7,500 for 2025. Workers who are 50 and older can generally contribute up to $31,000 annually to those retirement plans starting in 2025 under the SECURE 2.0 Act of 2022.
The IRS adjusted the thresholds under which taxpayers can contribute to a traditional IRA and receive a tax deduction for their contribution. The IRS held the contribution limits for IRAs steady but increased the deduction phase-out range for traditional IRAs and the contribution phase-out range for Roth IRAs. The Saver’s Credit, also known as the Retirement Savings Contributions Credit, is $39,500 for individuals, $79,000 for married couples filing jointly, and $59,250 for heads of household.
In the article, Trump donor Norm Champ discusses how the Biden-Harris regulations have been hurting Americans’ retirement funds.