2025 Brings Bigger Paychecks and Enhanced 401(k) Options for Older Workers
TL;DR Summary
In 2025, many Americans may see slightly larger paychecks due to IRS adjustments to tax provisions, including a 2.7% increase in standard deductions and shifts in tax brackets. These changes aim to combat inflation and prevent "bracket creep," where inflation pushes taxpayers into higher tax brackets. While these adjustments may reduce federal tax withholdings, they are not extra funds but rather a means to offset inflation's impact on purchasing power.
- Your paycheck may be larger in 2025, even if you don’t get a raise The Hill
- Older Workers to Get ‘Super’ 401(k) Catch-Up Contributions in 2025 The New York Times
- IRS Updates Capital Gains Tax Thresholds for 2025 Kiplinger's Personal Finance
- Older Workers Can Now Supersize Their 401(k) Savings The Wall Street Journal
- What is the ‘super’ 401(k) catch-up contribution for older workers? ABC27
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