SOMA Living January 2025

FINANCIAL FOCUS

YOU CAN CONTRIBUTE MORE TO YOUR 401(K) THIS YEAR!

Your 401(k) will likely be a crucial source of income after you retire. The good news is that you can contribute even more to your plan in 2025 than ever before. CONTRIBUTION LIMITS: • The contribution limit for traditional and Roth 401(k) s, as well as similar plans like 457(b)s and 403(b)s, has increased by $500 for 2025, to $23,500. • If you’re 50 or older, you can contribute an additional $7,500, for a total of $31,000. • Under the SECURE 2.0 legislation, if you are between 60 and 63, you have a higher catch-up contribution — $11,250, instead of $7,500, for a total of $34,750. CONTRIBUTION STRATEGIES: Max out your contributions: If you can afford it, consider contributing the full amount to your 401(k). Meet the employer match: At least contribute enough to earn your employer’s matching contribution, if one is offered. Create a diversified portfolio: Spread your contributions among a range of investments to minimize risk and maximize growth. Adjust your portfolio over time: Review your portfolio annually and adjust it as needed based on your risk tolerance and time horizon. MAXIMIZE YOUR RETIREMENT SAVINGS: By contributing what you can afford to your 401(k) and managing your investments wisely, you can build a strong nest egg for your retirement.

Gary T. Jones 973.821.4900 • g.jones@EdwardJones.com

With over 25 years of experience, I work with individuals and businesses to help you achieve your financial goals. As a longtime resident of SOMA, I am proud to serve the local community. To learn more about the content of this article or schedule an appointment to talk about your goals, please contact me in my Maplewood office.

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JANUARY 2025 | SOMA LIVING 23

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