Get Ready to Thrive – Financial Tips for 2025
Happy New Year! As we dive into 2025, it’s a perfect moment to take a step back and assess your financial health—especially since January kicks off Financial Wellness Month. Whether you're aiming to build more wealth, reduce your tax bill, or prepare for the future, now is the time to make moves that will set you up for financial success.
Here are five essential tips and updates you should know to optimize your finances in the year ahead.
1. Take Advantage of 401(k) Automatic Enrollment Under SECURE 2.0
If you're eligible for a 401(k) or 403(b), there’s a big change starting this year. Thanks to the SECURE 2.0 Act, employees will be automatically enrolled in these retirement plans—unless you opt out. The goal? Increase participation, which benefits both employees (through tax-deferred savings) and employers (with potential tax credits and improved retention). If you’re automatically enrolled, make sure to review your contribution rate and investment options to align with your retirement goals.
2. Maximize Retirement Savings with New Catch-Up Contribution Limits
If you are between the ages of 60-63, SECURE 2.0 has great news for you! Starting in 2025, you can contribute up to $11,250 in catch-up contributions to your 401(k), 403(b), or governmental 457 plan; 50% more than the standard catch-up amount of $7,500. If you haven’t been contributing the maximum, this new rule could be a fantastic opportunity to start doing so and turbocharge your retirement savings.
3. Keep an Eye on Potential Tax Changes in 2026
The clock is ticking toward 2026, when some major changes to tax laws may take effect. The possible expiration of the Tax Cuts and Jobs Act (TCJA) could mean higher taxes for many, as individual income tax rates, the child tax credit, and exemptions for state and local taxes would all revert to pre-2018 levels. Some provisions that benefit business owners and estates may expire too. Now is a great time to review your tax strategy and explore tax-planning options in the event that the rules change.
4. Supercharge Your Health Savings with HSA Contributions
Healthcare costs continue to rise, and an HSA (Health Savings Account) is one of the most powerful tools for managing them. In 2025, the contribution limits for HSAs are rising to $4,300 for individual coverage (up from $4,150 in 2024) and $8,550 for family coverage (up from $8,300 in 2024). If you haven’t maxed out your HSA yet, consider doing so to take advantage of tax-free contributions, growth, and withdrawals for qualified medical expenses. It’s a great way to save for the future while lowering your taxable income.
5. Embrace New Tech Tools to Manage Your Finances
The right financial technology can help you manage your money more effectively than ever before. Whether it’s a budgeting app to keep your spending on track or an AI-powered investment platform to optimize your portfolio, new tools are making it easier to manage your finances. If you haven’t explored the latest in financial tech, now’s the time to start—these tools can provide tailored insights to help you achieve your financial goals faster.
Let’s Make 2025 Your Most Financially Successful Year Yet
Financial Wellness Month is the perfect time for action. We’re here to support you in making these changes and ensuring your strategy is on track for success. Whether you’re looking to update your retirement plan, prepare for tax changes, or enhance your savings, we can help guide you through the process.
Please reach out for a consultation if you have any questions – we’re here to help! Here’s to a financially fit and prosperous 2025!
