Oak Brook Tax - Sock away more in 401(k)

If you began contributing to a 401(k) as soon as you started working, you may have accumulated a tidy nest egg for retirement. But not everyone had that luxury.

2025 Contribution Limits:

• Regular contribution limit: $23,500
• Catch-up contribution (age 50+): Additional $7,500
• Super catch-up (ages 60-63): Additional $11,250 (new for 2025!)
• Total possible contribution (ages 60-63): $34,750

Strategies to Maximize Contributions:

1. Start early in the year - Don't wait to increase your contribution percentage
2. Take the employer match - It's free money; contribute at least enough to get the full match
3. Increase gradually - Boost your contribution by 1% each year
4. Use windfalls - Apply bonuses or raises to retirement savings
5. Take advantage of catch-up provisions - If you're 50 or older, make the extra contribution

Tax Benefits:

• Traditional 401(k) contributions reduce your current taxable income
• Roth 401(k) contributions provide tax-free growth and withdrawals
• Your savings grow tax-deferred until retirement

Make the most of these opportunities to build your retirement security.