NEW 2025 Retirement Plan Contribution Limits
The annual contribution limit for employees who participate in 401(k), 403(b), governmental 457 plans, and the federal government's Thrift Savings Plan is increased to $23,500, up from $23,000. The limit on annual contributions to an IRA remains $7,000 and the IRA catch-up contribution limit for individuals aged 50 and over is $1,000 for 2025.
Catch-up Changes for 401(k), 403(b), governmental 457 plans and the federal government’s Thrift Savings Plans
The catch-up contribution limit that generally applies for employees aged 50 and over who participate in most 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan remains $7,500 for 2025. Under a change made in SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63 who participate in these plans. For 2025, this higher catch-up contribution limit is $11,250 instead of $7,500.
Contact our advisors to make sure you understand your plan’s contribution options!
Source: https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000
It’s Long-Term Care Awareness Month
Long-term care can be an expensive drain on family resources. Because almost 70% of people over 65 are expected to need long-term care services at some point, it makes sense to have a better understanding of long-term care and how it works.
Protect yourself and your family should the need for long-term care arise. Talk with our insurance specialists about your needs!
Source: . https://acl.gov/ltc/basic-needs/how-much-care-will-you-need
THE MONTH IN BRIEF
U.S. Markets
Stocks notched modest gains in August, helping investors forget a volatile month of trading, punctuated by upbeat comments by Fed officials about interest rates.
The Dow Jones Industrial Average rose 1.76 percent while the S&P 500 Index tacked on 2.28 percent. The Nasdaq Composite lagged a bit, advancing 0.65 percent.1
1. WSJ.com, August 31, 2024
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S&P 500 Index is an index of 500 of the largest exchange-traded stocks in the US from a broad range of industries whose collective performance mirrors the overall stock market. The Dow Jones Industrial Average is a widely watched index of 30 American stocks thought to represent the pulse of the American economy and markets. Investors cannot invest directly in an index. The NASDAQ is an index that tracks the cumulative results on a market capitalization basis of all stocks trading in the NASDAQ system. Investors cannot invest directly in an index.Past performance is no guarantee of future results. 11/24