Breaking: 401(k) Limits Jump Again in 2025 – How Much More Can You Actually Save?

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Key Takeaways 
  • Inflation's Silver Lining: While we've dealt with inflation in gas, food, and insurance prices, there's a positive side effect - 401(k) contribution limits are increasing
  • Current vs. Projected Limits: 401(k) contributions are currently just over $20,000, with experts predicting increases to $22,000 or even $23,000 by year-end
  • Monitor Your Plan Limits: Stay informed about maximum contribution limits for your employer's 401(k) plan to take full advantage of increases
  • Maximize Employer Matching: Always max out your contributions, especially if your employer offers matching - it's essentially free money and a free raise
  • Tax Advantages: Additional 401(k) contributions save you on income taxes, providing a legal way to reduce your tax burden
  • Don't Miss Free Money: Employer matching is one of the best benefits available - failing to contribute enough means leaving money on the table
  • Legal Tax Avoidance: The government offers 401(k) plans as a legitimate way to reduce taxable income - take advantage of these opportunities
  • Stay Updated: Keep watching for new legislation that may further increase 401(k) contribution limits
Action Items for Listeners
  • Review your current 401(k) contribution amount
  • Check if you're maximizing employer matching
  • Monitor upcoming limit changes for 2025
  • Consider increasing contributions when new limits take effect
Breaking: 401(k) Limits Jump Again in 2025 – How Much More Can You Actually Save?
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