2025 Big Changes For 401Ks, IRAs & ROTHs

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  • Опубліковано 13 гру 2024

КОМЕНТАРІ • 127

  • @Bigwilli123
    @Bigwilli123 9 годин тому +255

    Retirement planning in 2025 feels tougher than ever, doesn’t it? Between inflation, unpredictable markets, and rising costs, I’m honestly worried about whether my savings will last. I’ve been trying to manage everything myself, but it’s overwhelming

    • @Theodore-tu5zg
      @Theodore-tu5zg 9 годин тому

      I hear you. A lot of people underestimate how quickly things can change financially. One big mistake I see is people relying too heavily on cash savings. With inflation, that money loses value over time. Investing smartly is the only way to outpace inflation.

    • @Larry1-pl2wq
      @Larry1-pl2wq 9 годин тому

      After a devastating hurricane destroyed my beachside business in 2017, I vowed to never again put all my eggs in one basket. I've since diversified my investments and hired a financial advisor to manage my excess funds. Now, as a semi-retired sailor, I spend only 9 hours a week maintaining my yacht, and I'm thrilled to be just 5% shy of my $3.4 million retirement goal, thanks to savvy investments made since rebuilding my finances

    • @Sanchyfab
      @Sanchyfab 9 годин тому

      Do you have any recommendations for a good investment advisor? I could really use some help

    • @Larry1-pl2wq
      @Larry1-pl2wq 9 годин тому

      My CFA, Joseph Nick Cahill, is a renowned figure in his field. I recommend researching his name online; you'll find all his credentials and everything you need to work with a reliable professional. With many years of experience, he is a valuable resource for anyone looking to navigate the financial market.

    • @Colbe-lx7fb
      @Colbe-lx7fb 9 годин тому

      Thank you so much for the suggestion! I really needed it. I looked him up on Google and explored his website; he has an impressive background in investments. I've sent him an email, and I hope to hear back from him soon

  • @Grace.h-t8o
    @Grace.h-t8o День тому +220

    Lately, I've been contemplating retirement, uncertain whether my 401(k) and IRA will ensure a secure future. I've also invested $800K in the stock market, experiencing fluctuations without substantial gains.

    • @DhanaPayar
      @DhanaPayar День тому +4

      Using a 401(k) or IRA is a valuable strategy for retirement planning, providing potential savings growth and tax advantages. While the stock market is promising, expert guidance is essential for effective portfOlio management

    • @Michaelparker12
      @Michaelparker12 День тому +3

      Agreed, the issue is most people have the “I will do it myself mentality” but not skilled enough. Ideally, advisors are perfect reps for investing jobs and at first-hand encounter, my portfolio has yielded over 330%, since covid-outbreak to date, summing up nearly $1m.

    • @Agatha.wayne0
      @Agatha.wayne0 День тому +1

      this is quite huge! would you mind revealing info of your advisor here please? in dire need of portfolio rebalancing

    • @Michaelparker12
      @Michaelparker12 День тому +2

      I have a female advisor named Stacy Lynn Staples. I recommend researching her. To be very honest, I'm glad I decided to let someone handle expanding my finances even though I almost didn't think I should.

    • @Thompson-e7h
      @Thompson-e7h День тому +1

      I have a female advisor named Stacy Lynn Staples. I recommend researching her. To be very honest, I'm glad I decided to let someone handle expanding my finances even though I almost didn't think I should.

  • @uwerathsack
    @uwerathsack День тому +70

    I am 53 and retired at 50. One thing I did to retire early was to get out of the 401k and IRA programs. I bought rental real estate, and I am now a limited partner in about 1500+ units from collaborative efforts in the fund my estate planner has me invested in. I do not work.

    • @JosephZerafa-l3g
      @JosephZerafa-l3g День тому +1

      If I may ask, as in withdrew all of the money from the 401K and IRA programs? If so, what was your strategy behind that decision? Thank you

    • @uwerathsack
      @uwerathsack День тому +4

      My licensed fiduciary, "Caroline Suzan Olson," taught me about government acts. Caroline Suzan Olson demonstrated the advantages of long-term Treasury and alternative investments, which the government does not reveal.

    • @JacobGeorge436
      @JacobGeorge436 День тому +3

      My wife and I live off of our 401K. We don't work. 1 recommend highly to everyone to build your 401K or Roth IRA's as an alternate revenue stream in retirement to your Social Security. An observation on 401K's is that when it gets over 300K, it starts to accelerate. When you get over $500K, it can really accelerate as the stock market grows.

    • @CristhianPalomo-r6j
      @CristhianPalomo-r6j День тому +2

      Well, I can understand the wisdom behind working with these professionals because I'm completely aware of the psychological effects of bad financial decisions and investments.

    • @SergioMartinez-i4n
      @SergioMartinez-i4n День тому +3

      I know this lady you just mentioned. She is a portfolio manager and investment advisor. She gained recognition as a former employee at Goldman Sachs; a renowned investor she is. She has demonstrated expertise in investment strategies and has been involved in managing portfolios and providing guidance to clients.

  • @JohnSmith-mi8ov
    @JohnSmith-mi8ov День тому +3

    Hey Azul: Beginning in 2026, if your wages are higher than $145,000, any catch-up contributions you make will have to be done after taxes to a designated Roth account, which means you won't get a tax deduction.

  • @IvanWilson-c5k
    @IvanWilson-c5k День тому +44

    Hit 240k today. Appreciate you for all the knowledge and nuggets you had thrown my way over the last months. Started with 24k in October 2024…

    • @haldorsonsmolarek
      @haldorsonsmolarek День тому

      I would really love to know how much work you did put in to get to this stage

    • @IvanWilson-c5k
      @IvanWilson-c5k День тому

      I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear that you saved me from huge financial debt with just a small Investment, thank you Jihan Wu you're such a life saver

    • @BryonyClarke-e4v
      @BryonyClarke-e4v День тому

      Jihan Wu Services has really set the standard for others to follow, we love him here in Canada 🇨🇦 as he has been really helpful and changed lots of life's

    • @ElliGConcepcion
      @ElliGConcepcion День тому

      His guidance allowed me to restructure my retirement plan, resulting in an estimated $700,000 more by the time I retire.

    • @HollyGarwell
      @HollyGarwell День тому

      Waking up every tenth of each month to £210,000 it’s a blessing to I and my family… Big gratitude to this same Jihan Wu🙌

  • @danlake7970
    @danlake7970 День тому +5

    If your employer 401k plan allows for after tax contributions (not ROTH) and in-service withdrawals, then an employee can contribute up to $69,000 ($76,500 if over 50) and immediately convert it to a ROTH IRA. I've heard this called ROTH in-plan conversion, backdoor ROTH, or mega-backdoor ROTH. I think the money can then be withdrawn without taxes or penalties after 59 1/2. I'd love to see a dive into this topic from you, Azul if you haven't already covered it.

    • @bradfortner1684
      @bradfortner1684 14 годин тому

      Just remember that $69K limit is the overall 415 limit which includes employer match, so don’t squeeze out any match.

    • @danlake7970
      @danlake7970 12 годин тому

      @@bradfortner1684 Great point! As Azul says, the limits widely advertised are the employee contribution limit. If you go for after tax contributions, we need to leave room for the employer match. I've had anywhere from 3-7% match which is less I need to add from after-tax.

  • @Tristan14578
    @Tristan14578 День тому +3

    Love your Channel. You have helped me to understand that i need to retire when i can. Im only 38 now but i know once it’s time im done. I will have my life back

  • @KH-vw9yl
    @KH-vw9yl День тому +1

    Thank you for continuing to educate us and provide options.

  • @probuilder961
    @probuilder961 День тому +2

    I believe you can also use the HSA $ in retirement for ANYTHING, if you have (& can prove it) paid for any medical expenses out-of-pocket in the past.
    (check with an accountant)

  • @Lee73Lee
    @Lee73Lee День тому +4

    I thought there was a 2 year delay in implementation for that $7,500 catchup being forced into a ROTH if you make over 145K. I’m seeing the effective date is 1/1/26 not 1/1/25?

    • @dwoodcoffeeco
      @dwoodcoffeeco День тому +2

      That’s correct. The catch up provisions don’t have to be Roth until TY 2026

    • @JohnSmith-mi8ov
      @JohnSmith-mi8ov День тому +1

      Beginning in 2026, if your wages are higher than $145,000, any catch-up contributions you make will have to be done after taxes to a designated Roth account, which means you won't get a tax deduction.

    • @Lee73Lee
      @Lee73Lee День тому

      @ right. This video alludes to it happening in 2025 though so glad I looked it up to confirm!

    • @patmccullough5885
      @patmccullough5885 День тому +2

      The trigger is your TY 2025 earnings. Catch up contributions in TY 2026 must be to a Roth if you exceeded that income.

  • @annahopp
    @annahopp День тому +1

    Also consider "Roth Stuffing" as an opportunity. The money in a traditional 401(k)/IRA belongs to you AND the IRS. The money in a Roth 401(k)/IRA belongs 100% to you. So if you contribute to a 401(k) or IRA up to the IRS contribution limit, choosing a Roth 401(k)/IRA allows you to "stuff' more of YOUR money in there because none of it belongs to the IRS. You will pay more income taxes now though.

    • @carolinecollins2441
      @carolinecollins2441 День тому

      You'll pay more in taxes on the contributions (upfront) to Roths but no taxes on the growth when you start withdrawals. And, there are no RMDs. And the money withdrawn from a Roth doesn't count toward your income to figure IRMAA. So many good things about Roths!

  • @shobley
    @shobley 15 годин тому

    Increasing the limits... without actually paying people any more money... that's like a way to fix the problem... without fixing anything.

  • @probuilder961
    @probuilder961 День тому +1

    I think the closer to retirement or 59 1/2 yrs old you are, the more valuable the tax deduction becomes, vs the tax rate on your future gains.

  • @Patriciabanks5
    @Patriciabanks5 21 годину тому +4

    I just turned 47 and awfully late to investing with barely any portfolio except my 401k, I have a decent amount of cash saved up and with inflation currently soaring AGAIN, I’m getting worried about retirement, my intention is to retire at 55. How best do I maximize my savings of over $80k

    • @scottarmstrong11
      @scottarmstrong11 21 годину тому +4

      Retirement is now more difficult than it was in the past. it's all about balancing your risk tolerance with your long-term goals. Maybe consider speaking to an advisor to help in diversifying your portfolio to spread out the risk.

    • @monicawill5
      @monicawill5 20 годин тому +3

      I totally agree; I am 66 years old, recently retired, with approximately $1.2 million in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, I didn't do all this alone, but with the help of a financial advisor. Having one is currently the best way to trade in the stock market, especially for people nearing retirement.

    • @Johnlarry12
      @Johnlarry12 20 годин тому +3

      This is exactly how i wish to get my finances coordinated ahead or retirement. Can you recommend the financial advisor you used to get ahead?

    • @monicawill5
      @monicawill5 20 годин тому +3

      My CFA Carol Vivian Constable a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

    • @Johnlarry12
      @Johnlarry12 20 годин тому +2

      Just ran an online search on her name and came across her website; pretty well educated. thank you for sharing.

  • @JB-fq9dp
    @JB-fq9dp День тому +1

    When you're talking about tax-rate. Do you mean effective tax-rate or marginal tax-rate?

  • @CodeMonkey76
    @CodeMonkey76 День тому

    The higher catchup provision applies to you for the year you TURN 60,61,62, or 63. Not if you are that age. So if you're 63 and you turn 64 in December, 2025, that limit does NOT apply to you. It's based on your age at the END of the calendar year.

  • @smileystevie9662
    @smileystevie9662 День тому

    Thanks, Azul, for an informative video!

  • @sammac-d-og5508
    @sammac-d-og5508 День тому +1

    Question
    W2 employee
    Can I contribute catch up $30500 and an additional $7000 both tax deferred??

  • @TimeIdle
    @TimeIdle День тому

    The 401k catch-up contributions must be made to ROTH side of 401k (if wages >$145k) kinda stinks. Edit. I just looked up and this particular rule doesn't go into effect in to 2026. Correct me if I'm wrong.

  • @RobertFoster-n9v
    @RobertFoster-n9v День тому

    Love your guidance and your haircut. I am turning 60 during 2025. Am eligible in 2025 for this or would I have to wait until 2026?

  • @johnkola6475
    @johnkola6475 День тому

    can you be on Affordable Care Act and contribute to HSA?

  • @ErcoupePilot
    @ErcoupePilot День тому

    Hello Azul, I really enjoy and appreciate your videos. What about those of us over 63 (64 to 70)? What is the new make-up contribution and total for us?

  • @richardhudson1243
    @richardhudson1243 День тому +5

    Whenever I leave a company, I move it immediately to an IRA while using the new companies 401k. The thing I like about not keeping it in the 401k once you leave a company is in CONTROL. I like controlling what I can invest in, unlike the 401k where it’s ultimately picked for you.

    • @LUCIASMITH-d1z
      @LUCIASMITH-d1z День тому +2

      what's the rollover for ?

    • @tatianastarcic
      @tatianastarcic День тому +1

      The purpose of the rollover is technically to consolidate your retirement assets so it can grow faster in one managed account. I put about $80k in rollovers from 2 previous jobs that are managed by my Financial Advisor, Now my portfolio is about $400k... it has been great returns.

    • @JacobsErick-u8r
      @JacobsErick-u8r День тому +1

      I'm still sort of a rookie out here ..if you don't mind who is your F.A ?

    • @tatianastarcic
      @tatianastarcic День тому +1

      When ‘Melissa Terri Swayne’ is trading, there's no nonsense and no excuses. She wins the trade and you win. Take the loss, I promise she'll take one with you.

    • @HoskinsShanellNicole
      @HoskinsShanellNicole День тому

      She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

  • @johnneal539
    @johnneal539 День тому

    Playing monopoly and changing the rules when you land on go directly to jail do not pass go.

  • @gobot4455
    @gobot4455 День тому +2

    Forcing Roth contributions? Don't threaten me with a good time.

  • @joec2114
    @joec2114 День тому

    What about contribution catch up is you are over 63?

  • @user-mad7max11dystopia
    @user-mad7max11dystopia День тому

    Now is not the time to contribute more than the matched amount unless you can direct the money to go to funds that don’t involve stocks. I moved all my 401k to money market funds in 2007 and missed the crash that devastated the stock market. I’m pretty sure we are headed for another cliff right now. Tariffs and trade wars are the last thing an overbought stock market needs.

  • @christschool
    @christschool День тому +18

    There shouldn't be contribution limits at all. Start taxing wealthy people their fair share and let us average earners contribute whatever we can because the more we can contribute, the less we'll need in safety net programs later in life.

    • @vanji611
      @vanji611 День тому +14

      Wealthy peeps are overtaxed, bro.

    • @lokerola
      @lokerola День тому +3

      @@vanji611 Hardly

    • @shou635
      @shou635 День тому +13

      What exactly is “their fair share”?
      Top 10% of earners already pay 70% of taxes.
      It’s always fine if someone else has to pay, right? Maybe if EVERYONE contributed, we’d all be more concerned about wasteful spending.

    • @matthewdorso4302
      @matthewdorso4302 День тому

      Enough of tax wealthy people their fair share talk. That’s a democratic talking point and complete lie. Open your eyes and see the truth. We overspend and can cut taxes for everyone. Wealthy people who pay less in taxes CREATE MORE JOBS! Don’t believe the democrats!

    • @matthewdorso4302
      @matthewdorso4302 День тому

      @@shou635you are spot on!

  • @Lion_McLionhead
    @Lion_McLionhead День тому

    The lion kingdom finally qualifies for a roth in 2025, thanks to catch up contributions & inflation.

  • @DavidFlorez
    @DavidFlorez День тому

    Where do you see that catch-up contributions have to go to the Roth part of your 401k if wages are over $145k? The IRS website doesn't say so.

    • @bobburnett7190
      @bobburnett7190 День тому +1

      that does not go into effect till 2026 Part of Secure 2.0, it does NOT go into effect until 2026

  • @YadaniL-g8k
    @YadaniL-g8k 20 годин тому

    I plan to retire or reduce my work hours in five years, and I'm interested in how others allocate their income between savings, spending, and investments. I currently earn about $175K annually but haven't built up much in savings so far.

    • @jessicasquire
      @jessicasquire 19 годин тому

      That's quite impressive! Can you share more information about your financial advisor??

  • @rickyaz8640
    @rickyaz8640 День тому

    Better to be retired before needing additional contribution space in your early 60s

  • @RashelYeva
    @RashelYeva День тому +2

    !!!I am at the beginning of my "investment journey", planning to put 385K into dividend stocks so that I will be making up to 30% annually in dividend returns. any good recommendation on great performing stocks or Crypto will be appreciated.

    • @RashelYeva
      @RashelYeva День тому

      how would you recommend i enter the crypto market? I am also looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally. What's your take on this approach? and How can i reach her, if you don't mind me asking?

    • @ElizabethHansick
      @ElizabethHansick День тому

      look up her name on the web for her website.

    • @RashelYeva
      @RashelYeva День тому

      I've just looked up her full name on my browser and found her webpage without sweat, very much appreciate this.

    • @gibblespascack1418
      @gibblespascack1418 День тому

      @@RashelYeva Crypto is backed by nothing except the next person who buys. I have nothing in crypto. It might be better to buy something that has some residual value holding it's value up above 0. I am not a fan of gold or silver, but at least it is backed up by the underlying value of the metal. I have stayed in the S&P500 for years which has worked out for me, but you may need to look at some sectors instead of just large cap stocks in the US. When I was young, shoveling money into mutual funds worked. Once you get to 100K, the growth starts to outpace your contributions and then eventually your working income. ETFs might be better because they do not have the LT and ST capital gains distributed to you every year(like average mutual funds) which you need to pay tax on. But when starting out and building the portfolio, it is not a problem.

  • @jimknarr
    @jimknarr День тому +2

    Azul, why do you crank out so many videos? Kick back and enjoy your younger years!

  • @oscarwindham6016
    @oscarwindham6016 День тому +1

    Viewers beware, this guy, Azul, a "financial advisor" is on the public record as stating that we have a "national debt" when nothing could be further from the truth. WE DO NOT HAVE A NATIONAL DEBT and anyone who says we do, and I mean ANYONE who says that we have a national debt is lying, and I can very easily prove it.

    • @genconex
      @genconex День тому +2

      Prove it.

    • @probuilder961
      @probuilder961 День тому +2

      National debt, national debt, national debt!

    • @danlake7970
      @danlake7970 День тому +3

      ok, genius. Why don't you make your own channel and you can talk about it all you want.

    • @oscarwindham6016
      @oscarwindham6016 День тому

      @@danlake7970 Excuse me, I got you confused with probuilder961. Anyway, if you can, review the replies I left for him, and I would also recommend that you view video (9) on the UA-cam channel - Equity Spending - that is not my channel, but these nine videos are, and video (9) really does pretty much cover it all. Then there is video (7) that is very revealing when it comes to who it is behind the censorship and suppression of these videos for all of these years, not to mention the censorship and suppression of my book which the likes of Senator Mitch McConnell does not want the masses to read.

    • @oscarwindham6016
      @oscarwindham6016 День тому

      @@danlake7970 Another thing, so that I don't end up like RFK Jr. or Herod, I know what I know by the grace of Almighty God, and if you're a Christian, you know exactly what I'm talking about.

  • @TomEdwardi
    @TomEdwardi День тому

    !!!I am at the beginning of my "investment journey", planning to put 385K into dividend stocks so that I will be making up to 30% annually in dividend returns. any good recommendation on great performing stocks or Crypto will be appreciated.

    • @FederickLeo
      @FederickLeo День тому

      As a newbie investor, it’s essential for you to have a mentor to keep you accountable.
      Ruth Ann Tsakonas is my trade analyst, she has guided me to identify key market trends, pinpointed strategic entry points, and provided risk assessments, ensuring my trades decisions align with market dynamics for optimal returns.

    • @DerickSams
      @DerickSams День тому

      I managed to grow a nest egg of around 120k to over a Million. I'm especially grateful to Adviser Ruth Ann Tsakonas, for her expertise and exposure to different areas of the market..

    • @FederickLeo
      @FederickLeo День тому

      I don't really blame people who panic. Lack of
      information can be a big hurdle. I've been
      making more than $200k passively by just
      investing through an advisor, and I don't have
      to do much work.. Inflation or no inflation, my
      finances remain secure. So I really don't blame
      people who panic.

    • @DerickSams
      @DerickSams День тому

      Without a doubt! Ruth Ann Tsakonas is a trader who goes above and beyond. she has an exceptional skill for analysing market movements and spotting profitable opportunities. Her strategies are meticulously crafted on thorough research and years of practical experience.

    • @TomEdwardi
      @TomEdwardi День тому

      how would you recommend i enter the crypto market? I am also looking at studying some traders and copying their strategy rather than investing myself and losing money emotionally. What's your take on this approach? and How can i reach her, if you don't mind me asking??