IRS Boosts 401(k) Contributions and Capital Gains Thresholds for 2025
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.
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- IRS raises 401(k) contribution limits, adds super catch-up for 60-63 year olds in 2025 USA TODAY
- Older Workers Can Now Supersize Their 401(k) Savings The Wall Street Journal
- IRS Updates Capital Gains Tax Thresholds for 2025 Kiplinger's Personal Finance
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