Episode 139: New IRS Updates for 2025

Send us Fan MailThis 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 jointly35% for incomes over $250,525 and $501,050 for married couples filing jointly32% for incomes over $197,300 and $394,600 for married couples filing jointly24% for incomes over $103,350 and $206,700 for married couples filing jointly22% for incomes over $48,475 and $96,950 for married couples filing jointly12% for incomes over $11,925 and $23,850 for married couples filing jointly10% for incomes $11,925 or less and $23,850 or less for married couples filing jointlyThe 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 limits401(k) 403(b) and 457 employee contribution limitsUnder age 50 $23,500Age 50-59, age 64 and older $23,500 + $7,500 catch up for total $31,000Age 60-63 - $23,500 + $11,250 catch-up for total $34,750401(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 $7,000Age 50+ $7,000 + $1,000 catch-up = $8,000Defined 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  Please subscribe and leave a review on your favorite Podcasting platform. Get 12 Financial Mistakes that Keep Physicians from Building Wealth at https://www.growyourwealthymindset.com/12financialmistakesIf you want to start your path to financial freedom, start with the Financial Freedom Workbook. Download your free copy today at https://www.GrowYourWealthyMindset.com/fiworkbookDr. Elisa Chiang is  a physician and money coach who helps other doctors reach their financial goals by mastering their money mindset through personalized 1:1 coaching .You can learn more about Elisa at her website or follow her on social media.Website: https://ww.GrowYourWealthyMindset.comInstagram https://www.instagram.com/GrowYourWealthyMindsetFacebook https://www.facebook.com/ElisaChianghttps://www.facebook.com/GrowYourWealthyMindsetYouTube: https://www.youtube.com/c/WealthyMindsetMDLinked In: www.linkedin.com/in/ElisaChiang Disclaimer: The content provided in the Grow Your Wealthy Mindset Podcast...