The CPA Financial Planner Newsletter | February 2025

As we begin 2025, financial planning remains essential for retirees and investors. While many retirees face higher-than-expected costs, most still enjoy their desired lifestyle. The IRS has introduced key tax adjustments, including an increased gift tax exclusion ($19,000) and estate tax exemption ($13.99 million). Retirement contribution limits have also been adjusted for inflation, with 401(k) limits rising to $23,500, while IRA limits remain at $7,000.

For married couples, a team approach to retirement savings can enhance long-term security by coordinating investments and leveraging employer benefits. Spousal IRAs also provide a way for non-working spouses to save for retirement. As tax season nears, proactive planning – such as reviewing past returns and making last-minute IRA or HSA contributions – can help individuals optimize tax efficiency, while preserving and growing their wealth.

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