Episode 139: New IRS Updates for 2025

The Grow Your Wealthy Mindset Podcast

This episode discusses the adjustment in tax brackets and changes in contribution limits for tax advantaged accounts for 2025.

Marginal Tax Rates for 2025

37% for single taxpayers with incomes over $626,350 and $751,600 for married couples filing jointly

35% for incomes over $250,525 and $501,050 for married couples filing jointly

32% for incomes over $197,300 and $394,600 for married couples filing jointly

24% for incomes over $103,350 and $206,700 for married couples filing jointly

22% for incomes over $48,475 and $96,950 for married couples filing jointly

12% for incomes over $11,925 and $23,850 for married couples filing jointly

10% for incomes $11,925 or less and $23,850 or less for married couples filing jointly

The standard deduction for 2025 is $15,000 for single filers and $30,000 for married couples filing jointly.
Social security tax now applies to the first $176,100 of income, up from $168,600 in 2024. This means paying an extra $465 in 2025 to social security taxes for salaries above $176,100.
2025 Contribution limits

401(k) 403(b) and 457 employee contribution limits

Under age 50 $23,500

Age 50-59, age 64 and older $23,500 + $7,500 catch up for total $31,000

Age 60-63 - $23,500 + $11,250 catch-up for total $34,750

401(k) and 403(b) Employer contribution limits - $46,500 or 25% of employees salary, whichever is lower, contrubtions are salary capped at $350,000

IRA/Roth IRA

Age <50 $7,000

Age 50+ $7,000 + $1,000 catch-up = $8,000

Defined benefit plan contribution limit - $280,000

Define contribution plans contribution limit - $70,000

Health Savings accounts contribution limit - $4,300 for single and $8550 for families There is a 1,000 catch up for those 55 and older.
More details at https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025
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Disclaimer: The content provided in the Grow Your Wealthy Mindset Podcast is for informational and entertainment only and should not be considered professional investment, legal, or tax advice. Dr Elisa Chiang is not a certified financial planner, attorney, or accountant. The views expressed are the personal opinion of Elisa Chiang and her guests and should not be taken as advice specific to you, the listener of the podcast. Personal finance is personal and your personal financial decision need to be made based on your personal financial situation and risk tolerance after having completed your own due diligence.