.png?width=1080&height=1080&name=LinkedIn%20with%20Light%20Blue%20Background%20(1).png)
.png?width=1080&height=1080&name=Facebook%20with%20Light%20Blue%20Background%20(1).png)
.png?width=1080&height=1080&name=Instagram%20(1).png)
Advanced Tax Planning for High-Net-Worth Individuals
High-net-worth individuals face complex tax challenges. Learn about advanced tax planning strategies for investments, estates, retirement, and...
The 2024 401(k) catch-up contributions have not changed. However, other IRS updates may impact your retirement plan. EP Wealth can help you navigate these guidelines. Find an advisor near you.
What Are the 2025 401k Contribution Catch-Up Rules?
It’s helpful to note the maximum allowable contribution for your retirement plan in 2025. Although the Internal Revenue Service (IRS) increased the overall contribution limit for 401(k) plans from $23,000 to $23,500 in 2025, the catch-up contribution for individuals aged 50 and older remains unchanged at $7,500.
EP Wealth retirement planning advisors are here to help you navigate other changes that may impact your investment strategy for 2025 and for the years ahead.
The Importance of Catch-Up Contributions for Retirement Planning
Once you turn 50, you are eligible to contribute more money to your 401(k) plan every year through catch-up contributions. Even if you haven’t hit your 50th birthday, you can still make catch-up contributions during the calendar year that you turn 50.
These additional contributions can be a valuable way to help those who may have started planning for the future a bit later catch up as they move closer to retirement.
Catch-up contributions may come with a significant tax advantage. The tax deductions you claim on catch-up contributions can potentially save you a nice sum of money off your yearly tax bill. Income tax on 401(k) funds isn’t due until you withdraw that money from your account. And if you are in a lower tax bracket as a retiree, you will pay the lower rate on your 401(k) distributions.
Contact an EP Wealth Advisor for Custom Retirement Planning Solutions
If you’re wondering how your 401(k) fits into your larger retirement planning strategy for 2025, EP Wealth advisors are here to help. We work with you to understand your needs and goals at every stage of life—and build a plan around them.
We meet you where you are today and provide practical guidance to support your vision for retirement. To learn more about our services or to start planning for the year ahead, contact an EP Wealth advisor near you.
DISCLOSURES:
- Information presented is general in nature and should not be viewed as a comprehensive analysis of the topics discussed. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions. Content does not involve the rendering of personalized investment advice nor is it intended to supplement professional individualized advice.
- Hiring a qualified advisor and/or financial planner does not guarantee investment success and does not ensure that a client or prospective client will experience a higher level of performance or results. No guaranty or warranty is made that any direct or implied results or projections being represented here will be met or sustained.
- The need for a financial advisor or financial planner and/or the type of services required are specific to the uniqueness of each individual’s circumstances. There is no guarantee or warrantee that the services offered by EP Wealth Advisors, LLC will satisfy your specific financial services requirements. Services offered by other advisors may align more to your specific needs.
- All investment strategies have the potential for profit or loss. Different types of investments and investment strategies involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for a client's portfolio. The risk of loss can never be eliminated even if working with a professional.
- EP Wealth Advisors, LLC. is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability
- Request an appointment with an EP Wealth Advisor when you have a minimum of $500,000 in investable assets – which includes qualified retirement plans (IRA, Roth IRA, 401(k), taxable brokerage, cash (savings / checking) and CDs. Investable assets do not include your home, vehicles, or collectibles.
- The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisors. Before making any decision or taking any action, you should consult with a professional tax advisor who has been provided with all pertinent facts relevant to your situation. EP Wealth Advisors is not in the business of providing legal or tax advice. Please consult with a CPA, tax professional, and/or attorney regarding your specific situation.
