New Tax Deductions & Retirement Contributions for Seniors

0:00In Durham, it's March 20th. Here's what is happening. The IRS has a new tax deduction for lower and middle-income seniors over age 65 when filing 2025 taxes. Singles can claim up to $6,000 extra while married couples filing jointly qualify for $12,000 if both spouses meet the rules. This phases out for those with modified adjusted gross income above $75,000 for singles or $150,000. For couples, fully disappearing at $175,000 or $250,000, looking ahead to 2026 contributions, 401K plans and similar accounts now allow $24,500 up from $23,500 last year. Folks 50 and older get an $8,000 catch-up with those age 60 to 63 eligible for $11,250.

1:00Individual retirement accounts rise to $7,500 plus a $1,100 catch-up. High earners over $150,000 in wages must direct catch-ups to Roth accounts. These changes help retirees manage taxes better, especially with required minimum distributions starting at age 73 for those born between. 1951 and 1959, or 75 for anyone born in 1960 or later. Roth 401Ks and Roth IR, as skip required minimum distributions while you're alive, avoiding a 25% penalty on shortfalls. One smart move is qualified charitable distributions from IRAs up to $111,000 in 2026, which counts. You're required minimum distribution without boosting taxable income. This also keeps modified adjusted gross income lower-to-dodge income-related monthly adjustment amounts on Medicare premiums, kicking in above one.

2:00$109,000 for singles or $218,000 for couples based on 2024 income. Planning ahead like this can save real money, so chat with the tax pro to tailor it to your situation and stay on top of these ships.