As we approach tax season, it’s crucial to stay aware of upcoming deadlines, rules, contribution limits, and strategies. As always, our team is here to help guide you in making prudent decisions on any of the strategies below.
We’ve also included this handy PDF guide for your convenience: 2025 Important Tax Numbers and Contribution Limits
2025 Important Tax Numbers and Contribution Limits
IRA Contributions: For 2024 and 2025, the maximum contribution limit for IRAs has increased to $7,000, with an additional $1,000 catch-up contribution allowed for individuals aged 50 and above, bringing their total limit to $8,000. For the 2024 tax year, the contribution deadline is April 15th, 2025.
- Potential Tax Benefits: Contributions to a traditional IRA may be tax-deductible, depending on your income and whether you or your spouse are covered by a retirement plan at work. Earnings in a traditional IRA grow tax-deferred until you withdraw them in retirement. In contrast, Roth IRA contributions are made with after-tax dollars, but qualified withdrawals in retirement are tax-free.
Required Minimum Distributions (RMDs): Traditional IRA holders must begin taking RMDs by April 1 of the year following the year they reach age 72. Roth IRAs do not have RMDs during the original owner’s lifetime, providing more flexibility in retirement planning.
401(k) Plan Contributions: The employee contribution limit for 401(k) plans will increase to $23,500, up from $23,000 in 2024. This adjustment also applies to similar plans, such as 403(b) and most 457 plans, as well as the federal government’s Thrift Savings Plan.
- Catch-Up Contributions: For participants aged 50 and over, the catch-up contribution limit remains at $7,500. However, a notable change is forthcoming for individuals aged 60 to 63, who will be allowed to make catch-up contributions up to $11,250, thanks to provisions in the SECURE 2.0 Act.
Tax Filings: Individual income tax returns are due April 15, 2025 unless you file Form 4868 seeking an extension until October 15th. Partnerships (including multi-member LLCs) and S-Corps filing deadline is usually March 15th, unless said entity operates on a fiscal year. A six-month extension to September 15th (or five months after the original deadline) can be requested using Form 7004.
Tax Payments: If you earn income that isn’t subject to withholding taxes – like freelance work, rental income, investment income, realizing capital gains – making estimated tax payments throughout the year is essential to avoid penalties.
The year is divided into four tax payment periods, each with a specific due date.
Estimated Tax Payment Schedule for 2024:
- January 1 – March 31: Payment due by April 15th, 2024
- April 1 – May 31: Payment due by June 15th, 2024
- June 1 – August 31: Payment due by September 15th, 2024
- September 1 – December 31: Payment due by January 15th, 2025 (See Chapter 2 of IRS Publication 505 for January payment exceptions)
What we can do to help:
- We Can Review Your Retirement Goals: Determine how any of these items fit into your overall retirement strategy and objectives.
- Make Timely Contributions: Ensure your contributions are made by April 15th, 2025, to qualify for the 2024 tax year. Contributions can be facilitated through our Client Service Team and your Advisory Team.
- Tax Payments: While you can make these online, by mail, or by phone with the IRS directly, we can also help facilitate these payments for you from your Schwab or Fidelity accounts, or by ACH/Wire to your bank account or the IRS. Contact our Client Service Team today for more information!
Concerns or questions about how your investment portfolio will hold up in the current market environment? Contact Financial Synergies today.
We are a boutique, financial advisory and total wealth management firm with over 35 years helping clients navigate turbulent markets. To learn more about our approach to investment management please reach out to us. One of our seasoned advisors would be happy to help you build a custom financial plan to help ensure you accomplish your financial goals and objectives. Schedule a conversation with us today.
More relevant articles by Financial Synergies:
Blog Disclosures
This content, which may contain security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own financial advisors as to legal, business, tax, and other related matters concerning any investment.
The commentary in this “post” (including any related blogs, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Financial Synergies Wealth Advisors, Inc. employees providing such comments, and should not be regarded as the views of Financial Synergies Wealth Advisors, Inc. or its respective affiliates or as a description of advisory services provided by Financial Synergies Wealth Advisors, Inc. or performance returns of any Financial Synergies Wealth Advisors, Inc. client.
Any opinions expressed herein do not constitute or imply endorsement, sponsorship, or recommendation by Financial Synergies Wealth Advisors, Inc. or its employees. The views reflected in the commentary are subject to change at any time without notice.
Nothing on this website or Blog constitutes investment or financial planning advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. It also should not be construed as an offer soliciting the purchase or sale of any security mentioned. Nor should it be construed as an offer to provide investment advisory services by Financial Synergies Wealth Advisors, Inc.
Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Financial Synergies Wealth Advisors, Inc. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.
Any charts provided here or on any related Financial Synergies Wealth Advisors, Inc. personnel content outlets are for informational purposes only, and should also not be relied upon when making any investment decision. Any indices referenced for comparison are unmanaged and cannot be invested into directly. As always please remember investing involves risk and possible loss of principal capital; please seek advice from a licensed professional. Any projections, estimates, forecasts, targets, prospects and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Information in charts have been obtained from third-party sources and data, and may include those from portfolio securities of funds managed by Financial Synergies Wealth Advisors, Inc. While taken from sources believed to be reliable, Financial Synergies Wealth Advisors, Inc. has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. All content speaks only as of the date indicated.
Financial Synergies Wealth Advisors, Inc. is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Financial Synergies Wealth Advisors, Inc. and its representatives are properly licensed or exempt from licensure. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.
See Full Disclosures Page Here
2025 Important Tax Numbers and Contribution Limits
As we approach tax season, it’s crucial to stay aware of upcoming deadlines, rules, contribution limits, and strategies. As always, our team is here to help guide you in making prudent decisions on any of the strategies below.
We’ve also included this handy PDF guide for your convenience: 2025 Important Tax Numbers and Contribution Limits
2025 Important Tax Numbers and Contribution Limits
IRA Contributions: For 2024 and 2025, the maximum contribution limit for IRAs has increased to $7,000, with an additional $1,000 catch-up contribution allowed for individuals aged 50 and above, bringing their total limit to $8,000. For the 2024 tax year, the contribution deadline is April 15th, 2025.
Required Minimum Distributions (RMDs): Traditional IRA holders must begin taking RMDs by April 1 of the year following the year they reach age 72. Roth IRAs do not have RMDs during the original owner’s lifetime, providing more flexibility in retirement planning.
401(k) Plan Contributions: The employee contribution limit for 401(k) plans will increase to $23,500, up from $23,000 in 2024. This adjustment also applies to similar plans, such as 403(b) and most 457 plans, as well as the federal government’s Thrift Savings Plan.
Tax Filings: Individual income tax returns are due April 15, 2025 unless you file Form 4868 seeking an extension until October 15th. Partnerships (including multi-member LLCs) and S-Corps filing deadline is usually March 15th, unless said entity operates on a fiscal year. A six-month extension to September 15th (or five months after the original deadline) can be requested using Form 7004.
Tax Payments: If you earn income that isn’t subject to withholding taxes – like freelance work, rental income, investment income, realizing capital gains – making estimated tax payments throughout the year is essential to avoid penalties.
The year is divided into four tax payment periods, each with a specific due date.
Estimated Tax Payment Schedule for 2024:
What we can do to help:
Concerns or questions about how your investment portfolio will hold up in the current market environment? Contact Financial Synergies today.
We are a boutique, financial advisory and total wealth management firm with over 35 years helping clients navigate turbulent markets. To learn more about our approach to investment management please reach out to us. One of our seasoned advisors would be happy to help you build a custom financial plan to help ensure you accomplish your financial goals and objectives. Schedule a conversation with us today.
More relevant articles by Financial Synergies:
Blog Disclosures
This content, which may contain security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own financial advisors as to legal, business, tax, and other related matters concerning any investment.
The commentary in this “post” (including any related blogs, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Financial Synergies Wealth Advisors, Inc. employees providing such comments, and should not be regarded as the views of Financial Synergies Wealth Advisors, Inc. or its respective affiliates or as a description of advisory services provided by Financial Synergies Wealth Advisors, Inc. or performance returns of any Financial Synergies Wealth Advisors, Inc. client.
Any opinions expressed herein do not constitute or imply endorsement, sponsorship, or recommendation by Financial Synergies Wealth Advisors, Inc. or its employees. The views reflected in the commentary are subject to change at any time without notice.
Nothing on this website or Blog constitutes investment or financial planning advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. It also should not be construed as an offer soliciting the purchase or sale of any security mentioned. Nor should it be construed as an offer to provide investment advisory services by Financial Synergies Wealth Advisors, Inc.
Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Financial Synergies Wealth Advisors, Inc. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.
Any charts provided here or on any related Financial Synergies Wealth Advisors, Inc. personnel content outlets are for informational purposes only, and should also not be relied upon when making any investment decision. Any indices referenced for comparison are unmanaged and cannot be invested into directly. As always please remember investing involves risk and possible loss of principal capital; please seek advice from a licensed professional. Any projections, estimates, forecasts, targets, prospects and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Information in charts have been obtained from third-party sources and data, and may include those from portfolio securities of funds managed by Financial Synergies Wealth Advisors, Inc. While taken from sources believed to be reliable, Financial Synergies Wealth Advisors, Inc. has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. All content speaks only as of the date indicated.
Financial Synergies Wealth Advisors, Inc. is a registered investment adviser. Advisory services are only offered to clients or prospective clients where Financial Synergies Wealth Advisors, Inc. and its representatives are properly licensed or exempt from licensure. Investments in securities involve the risk of loss. Past performance is no guarantee of future results.
See Full Disclosures Page Here
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