This episode discusses the adjustment in tax brackets and changes in contribution limits for tax advantaged accounts for 2025.

Marginal Tax Rates for 2025

37% for single taxpayers with incomes over $626,350 and $751,600 for married couples filing jointly

35% for incomes over $250,525 and $501,050 for married couples filing jointly

32% for incomes over $197,300 and $394,600 for married couples filing jointly

24% for incomes over $103,350 and $206,700 for married couples filing jointly

22% for incomes over $48,475 and $96,950 for married couples filing jointly

12% for incomes over $11,925 and $23,850 for married couples filing jointly

10% for incomes $11,925 or less and $23,850 or less for married couples filing jointly

The standard deduction for 2025 is $15,000 for single filers and $30,000 for married couples filing jointly.
Social security tax now applies to the first $176,100 of income, up from $168,600 in 2024. This means paying an extra $465 in 2025 to social security taxes for salaries above $176,100.

2025 Contribution limits

401(k) 403(b) and 457 employee contribution limits

Under age 50 $23,500

Age 50-59, age 64 and older $23,500 + $7,500 catch up for total $31,000

Age 60-63 - $23,500 + $11,250 catch-up for total $34,750

401(k) and 403(b) Employer contribution limits - $46,500 or 25% of employees salary, whichever is lower, contrubtions are salary capped at $350,000

IRA/Roth IRA

Age <50 $7,000

Age 50+ $7,000 + $1,000 catch-up = $8,000

Defined benefit plan contribution limit - $280,000

Define contribution plans contribution limit - $70,000

Health Savings accounts contribution limit - $4,300 for single and $8550 for families There is a 1,000 catch up for those 55 and older.

More details at https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025

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If you want to start your path to financial freedom, start with the Financial Freedom Workbook. Download your free copy today at https://www.GrowYourWealthyMindset.com/fiworkbook

You can learn more about Elisa at her website or follow her on social media.

Website: https://ww.GrowYourWealthyMindset.com

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Disclaimer: The content provided in the Grow Your Wealthy Mindset Podcast is for informational and entertainment only and should not be considered professional investment, legal, or tax advice. Dr Elisa Chiang is not a certified financial planner, attorney, or accountant. The views expressed are the personal opinion of Elisa Chiang and her guests and should not be taken as advice specific to you, the listener of the podcast. Personal finance is personal and your personal financial decision need to be made based on your personal financial situation and risk tolerance after having completed your own due diligence.

In Episode 131: Escaping the Hedonic Treadmill, we learned that hedonic adaptation is the tendency to return to a relatively stable level of happiness. People tend to have a baseline or set point level of happiness (or unhappiness) that hey return to. There are ways to adjust that baseline.

In the book, The How of Happiness, Dr. Sonja Lynbomirsky outlines 12 activities to increase overall happiness by shifting one's baseline. For 2025, each month will have an episode that talks about activities that can help increase happiness by adjusting that baseline upwards.

This month’s episode is about expressing gratitude. Tune in to learn about activities that research has shown to increase happiness.

Please subscribe and leave a review on your favorite Podcasting platform.

If you want to start your path to financial freedom, start with the Financial Freedom Workbook. Download your free copy today at https://www.GrowYourWealthyMindset.com/fiworkbook

You can learn more about Elisa at her website or follow her on social media.

Website: https://ww.GrowYourWealthyMindset.com

Instagram https://www.instagram.com/GrowYourWealthyMindset

Facebook https://www.facebook.com/ElisaChiang

https://www.facebook.com/GrowYourWealthyMindset

YouTube: https://www.youtube.com/c/WealthyMindsetMD

Linked In: www.linkedin.com/in/ElisaChiang

Disclaimer: The content provided in the Grow Your Wealthy Mindset Podcast is for informational and entertainment only and should not be considered professional investment, legal, or tax advice. Dr Elisa Chiang is not a certified financial planner, attorney, or accountant. The views expressed are the personal opinion of Elisa Chiang and her guests and should not be taken as advice specific to you, the listener of the podcast. Personal finance is personal and your personal financial decision need to be made based on your personal financial situation and risk tolerance after having completed your own due diligence.

Flexible Spending and Heath Care Savings Accounts are both ways to pay for your medical expenses with pre-tax money. Anytime you can use pretax money to pay for anything, you are getting generally getting a 22% discount or more depending on your tax bracket.

Flexible Spending Accounts (FSA) are benefits that may be provided by your Employer. Not all Employers will provide this benefit and with some employers, you may pay a fee to have this benefit. Money is taking out of your paycheck throughout the year which can be used to directly pay for or reimburse qualified medical expenses. The money is use it or lose it so you want to consider your healthcare expenses carefully before decided how much money to set aside in these accounts.

Healthcare Savings Accounts (HSA) are available to anyone with a qualified High Deductible Healthcare Insurance Plan. This is not a benefit from your employer, but will often be set up with your employer if you are using a healthcare insurance plan they offer you as a benefit. You contribute pretax money into the account where you can invest it to grow tax free. If you use that money anytime in the future for qualified healthcare expenses, it comes out tax free as well. You can reimburse yourself for qualified medical expenses years after you incurred the expense, as long as the expense was incurred after the account was created. There is no other tax advantaged account where money goes in pre-tax, grows tax free, and can be withdrawn without paying taxes as well.

Tune in to this week’s podcast to learn more about the details of these two types of accounts.

Please subscribe and leave a review on your favorite Podcasting platform.

If you want to start your path to financial freedom, start with the Financial Freedom Workbook. Download your free copy today at https://www.GrowYourWealthyMindset.com/fiworkbook

You can learn more about Elisa at her website or follow her on social media.

Website: https://ww.GrowYourWealthyMindset.com

Instagram https://www.instagram.com/GrowYourWealthyMindset

Facebook https://www.facebook.com/ElisaChiang

https://www.facebook.com/GrowYourWealthyMindset

YouTube: https://www.youtube.com/c/WealthyMindsetMD

Linked In: www.linkedin.com/in/ElisaChiang

Disclaimer: The content provided in the Grow Your Wealthy Mindset Podcast is for informational and entertainment only and should not be considered professional investment, legal, or tax advice. Dr Elisa Chiang is not a certified financial planner, attorney, or accountant. The views expressed are the personal opinion of Elisa Chiang and her guests and should not be taken as advice specific to you, the listener of the podcast. Personal finance is personal and your personal financial decision need to be made based on your personal financial situation and risk tolerance after having completed your own due diligence.