Time’s Ticking: Max Out Your Retirement Contributions Before Year-End

From Sai CPA Services 

As 2025 winds down, it’s the perfect time to review your retirement savings strategy. Whether you’re contributing to a 401(k), IRA, or other retirement accounts, making the most of your annual limits can help secure your financial future and reduce your tax burden. 

401(k) Contributions

For 2025, you can contribute up to $23,000, plus an additional $7,500 catch-up contribution if you’re age 50 or older. 
If your employer offers matching contributions, don’t leave that free money unclaimed. 

Key Features of a 401(k) Plan

Tax Advantages: 

  • Traditional 401(k): Contributions are made with pre-tax dollars, lowering your taxable income for the year. Withdrawals in retirement are taxed as ordinary income. 
  • Roth 401(k): Contributions are made with after-tax dollars—no deduction upfront, but qualified withdrawals in retirement are tax-free. 

Traditional & Roth IRAs

You can contribute up to $7,000 in 2025, or $8,000 if you’re 50 or older. 
Keep in mind that Roth IRA eligibility depends on your income, so check whether you qualify before contributing. 

Important Deadlines

  • 401(k) Contributions: Must be made by December 31, 2025 
  • IRA Contributions: Can be made until April 15, 2026 
    However, planning ahead allows your investments more time to grow. 

Why It Matters

Every dollar you contribute now grows tax-deferred (Traditional) or tax-free (Roth), compounding over time. Even small increases can lead to significant long-term gains. 

Year-End Financial Tips from Sai CPA Services

  • Set up or increase automatic contributions 
  • Allocate your year-end bonus strategically 
  • Review your investment mix and rebalance if needed 
  • Consult with a CPA or financial advisor for personalized guidance 

 

Retirement may seem far off, but the earlier and more consistently you contribute, the greater your financial freedom later in life. 

Let Sai CPA Services help you make informed, tax-efficient decisions before year-end. 

Contact us today to schedule your year-end tax and retirement review. 

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Copyright © 2025 – Powered by SAI CPA SERVICES