(2024-09-27) Four Changes Coming To Iras In2025

Four Changes Coming to IRAs in 2025 1. Super-sized catch-up contributions for people aged 60 to 63

The limit on catch-up contributions for IRAs for 2024, is $1,000 — the same as it was in 2023, bringing the total contribution limit to $8,000.

Effective for the 2025 tax year, active participants aged 60 through 63 can contribute the greater of $10,000 or 150% of the 2024 catch-up contribution limit that is indexed for inflation. In 2025, the total limit for IRA contributions for those aged 60 to 63 is $10,000.

2. SIMPLE IRAs and catch-up contributions for people aged 60 to 63

3. New 10-year rule for inherited IRAs takes effect

for most beneficiaries, the new rules are fairly simple. If you inherited an IRA from someone who died on or after January 1, 2020, you are required to withdraw all funds in the IRA no later than December 31 of the tenth full calendar year following the death of the individual from whom you inherited the IRA.

4. Inherited IRA RMD penalties take effect