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2025 Tax Changes Are HERE: What You Need To Know

Benjamin Franklin once said that only two things in life are certain: death and taxes.
One thing that isn’t certain, though, is the tax code—it changes all the time. The good news? The IRS has just released its updated numbers for 2025, and we’re excited to break them down for you.

Finding this information in one place can be tricky, but don’t worry—we’ve got you covered. In this video, we’ll cover:

  • The new marginal tax brackets

  • Updated contribution limits for retirement accounts

🔔 Note:

  • We won’t go deep into how concepts like marginal rates and deductions work in this video. If you need a refresher, be sure to watch our other video on that topic right after this one.

  • Everything mentioned here is available in our 2025 Tax Guide at MoneyGuy Resources, so be sure to check it out for a one-stop reference.

📊 Marginal Tax Rates

Your marginal tax rate is the rate at which your next dollar of income is taxed. Let’s look at the changes:

  • Example:
    If you are a single filer earning $100,000 in taxable income, your marginal tax rate would be 22%, since that amount falls between $48,476 and $103,350.

  • For married couples filing jointly, the tax brackets are roughly double those of single filers (with a few exceptions).

💰 Retirement Account Contribution Limits (2025)

Let’s go over the updated contribution limits for a range of retirement accounts. Some limits have remained unchanged since 2024, but we’ll list them all for clarity.

✅ Standard Contribution Limits

  • Traditional & Roth IRA:
    $7,000 annually

  • Health Savings Account (HSA):

    • $4,300 for individuals

    • $8,550 for family plans

  • 401(k), 403(b), 457 plans:
    $23,500

  • SIMPLE IRA:
    $16,500

🔹 These accounts also allow catch-up contributions if you’re over 50, except for SEP IRAs.

⚡ Super Catch-Up Contributions (Ages 60–63)

Some employer-sponsored plans now offer super catch-up contributions for individuals between the ages of 60 and 63.

  • Eligibility is based on your age as of December 31st of the tax year.

  • Not all employers are required to offer this, so check with your HR department or benefits provider.

🏢 SEP IRA (Simplified Employee Pension)

  • Fully funded by employer contributions.

  • Contribution limit: 25% of compensation, up to $70,000 for 2025.

  • If your income exceeds $280,000, your contribution maxes out at $70,000.

  • SEP IRAs do not offer catch-up contributions.

📦 Other Accounts with Updated Limits

  • Flexible Spending Account (FSA):
    $3,300

  • ABLE Account:
    $119,000

  • 529 Plan:
    Technically no strict limit, but:

    • You can contribute up to $119,000 annually without filing a gift tax return.

    • Contributing more may trigger gift tax reporting.

We know that was a lot of information! Again, you can find all of these details and more in our comprehensive 2025 Tax Guide at MoneyGuy.com.

And before you go—make sure to subscribe so we can help you on your financial journey.

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