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,CA
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<h1 class="article-title">Key Retirement and Tax Numbers for 2025</h1>
<p class="article-subheading">Every year, the Internal Revenue Service announces cost-of-living adjustments that affect contribution limits for retirement plans and various tax deduction, exclusion, exemption, and threshold amounts. Here are a few of the key adjustments for 2025.</p>
<p class="article-subtitle"><img alt="" src="//www.emeraldhost.net/files/newsletters/WA_25032_Key%20Retirement%20and%20Tax%20Numbers%20for%202025.jpg"><br>
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Estate, gift, and generation-skipping transfer tax</p>
<ul><li><span style="font-size:16px">The annual gift tax exclusion (and annual generation-skipping transfer tax exclusion) for 2025 is $19,000, up from $18,000 in 2024.</span></li><li><span style="font-size:16px">The gift and estate tax basic exclusion amount (and generation-skipping transfer tax exemption) for 2025 is $13,990,000, up from $13,610,000 in 2024.</span></li>
</ul>
<p class="article-subtitle">Standard deduction</p>
<p>A taxpayer can generally choose to itemize certain deductions or claim a standard deduction on the federal income tax return. In 2025, the standard deduction is:</p>
<ul><li><span style="font-size:16px">$15,000 (up from $14,600 in 2024) for single filers or married individuals filing separate returns</span></li><li><span style="font-size:16px">$30,000 (up from $29,200 in 2024) for married joint filers</span></li><li><span style="font-size:16px">$22,500 (up from $21,900 in 2024) for heads of households</span></li>
</ul>
<p><span style="font-size:16px">The additional standard deduction amount for the blind and those age 65 or older in 2025 is:</span></p>
<ul><li><span style="font-size:16px">$2,000 (up from $1,950 in 2024) for single filers and heads of households</span></li><li><span style="font-size:16px">$1,600 (up from $1,550 in 2024) for all other filing statuses</span></li>
</ul>
<p>Special rules apply for an individual who can be claimed as a dependent by another taxpayer.</p>
<p class="article-subtitle">IRAs</p>
<p>The combined annual limit on contributions to traditional and Roth IRAs is $7,000 in 2025 (the same as in 2024), with individuals age 50 or older able to contribute an additional $1,000. The limit on contributions to a Roth IRA phases out for certain modified adjusted gross income (MAGI) ranges (see table). For individuals who are active participants in an employer-sponsored retirement plan, the deduction for contributions to a traditional IRA also phases out for certain MAGI ranges (see table). The limit on nondeductible contributions to a traditional IRA is not subject to phaseout based on MAGI.</p>
<hr><p class="article-subtitle">MAGI Ranges: Contributions to a Roth IRA<br>
</p>
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<tbody>
<tr>
<td> </td>
<td> </td>
<td><span style="font-size:18px">2024</span></td>
<td> </td>
<td><span style="font-size:18px">2025</span></td>
</tr>
<tr>
<td style="vertical-align:middle"><p><strong>Single/Head of household</strong></p></td>
<td style="vertical-align:middle"> </td>
<td><p><strong>$146,000–$161,000</strong></p></td>
<td> </td>
<td><p><strong>$150,000–$165,000</strong></p></td>
</tr>
<tr>
<td style="vertical-align:middle"><p><strong>Married filing jointly</strong></p></td>
<td style="vertical-align:middle"> </td>
<td><p><strong>$230,000–$240,000</strong></p></td>
<td> </td>
<td><p><strong>$236,000–$246,000</strong></p></td>
</tr>
<tr>
<td style="vertical-align:middle"><p><strong>Married filing separately</strong></p></td>
<td style="vertical-align:middle"> </td>
<td><p><strong>$0–$10,000</strong></p></td>
<td> </td>
<td><p><strong>$0–$10,000</strong></p></td>
</tr>
</tbody>
</table>
<p class="article-subtitle"><br>
<br>
MAGI Ranges: Deductible Contributions to a Traditional IRA<br>
</p>
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<th scope="col"> </th>
<th scope="col"> </th>
<th rowspan="2" scope="col"><span data-darkreader-inline-color="" style="--darkreader-inline-color:var(--darkreader-text-000000, #ffffff); color:#000000"><span style="font-size:18px">2024</span></span></th>
<th rowspan="2" scope="col"> </th>
<th rowspan="2" scope="col"><span data-darkreader-inline-color="" style="--darkreader-inline-color:var(--darkreader-text-000000, #ffffff); color:#000000"><span style="font-size:18px">2025</span></span></th>
</tr>
</thead>
<tbody>
<tr>
<td style="vertical-align:middle"><p><strong>Single/Head of household</strong></p></td>
<td style="vertical-align:middle"> </td>
<td><p><strong>$77,000–$87,000</strong></p></td>
<td> </td>
<td><p><strong>$79,000–$89,000</strong></p></td>
</tr>
<tr>
<td style="vertical-align:middle"><p><strong>Married filing jointly</strong></p></td>
<td style="vertical-align:middle"> </td>
<td><p><strong>$123,000–$143,000</strong></p></td>
<td> </td>
<td><p><strong>$126,000–$146,000</strong></p></td>
</tr>
</tbody>
</table>
<p><br>
<em><span style="font-size:11px"><strong>Note:</strong> The 2025 phaseout range is $236,000–$246,000 (up from $230,000–$240,000 in 2024) when the individual making the IRA contribution is not covered by a workplace retirement plan but is filing jointly with a spouse who is covered. The phaseout range is $0–$10,000 when the individual is married filing separately and either spouse is covered by a workplace plan.</span></em></p>
<hr><p class="article-subtitle">Employer-sponsored retirement plans</p>
<ul><li><span style="font-size:16px">Employees who participate in 401(k), 403(b), and most 457 plans can defer up to $23,500 in compensation in 2025 (up from $23,000 in 2024); employees age 50 or older can defer up to an additional $7,500 in 2025 (the same as in 2024), increased to $11,250 in 2025 for ages 60 to 63.</span></li><li><span style="font-size:16px">Employees participating in a SIMPLE retirement plan can defer up to $16,500 in 2025 (up from $16,000 in 2024), and employees age 50 or older can defer up to an additional $3,500 in 2025 (the same as in 2024), increased to $5,250 in 2025 for ages 60 to 63.</span></li>
</ul>
<p class="article-subtitle">Kiddie tax: child’s unearned income</p>
<p>Under the kiddie tax, a child’s unearned income above $2,700 in 2025 (up from $2,600 in 2024) is taxed using the parents’ tax rates.</p>
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