Twelve Days of Christmas - Quick Tips Part 1
I am trying something new this year. It is my version of 12 Days of Christmas. However, the focus here will be on themes I see with my physician clients. The articles will be incredibly short. The original plan was to send them out the first 12 business days of the year, but I thought that may be too many emails from me. Instead, I will be sharing them over the remaining Tuesdays until Christmas. Enjoy!
Day One
Your 2025 Contribution Limits are:
- $23,500 for 401k. Up $500 from 2024
- Catch-up stays at $7,000
- Super Catch-up of $11,250 for those 60-63 years old.
- IRA/Roth limits stay at $7,000
- IRA/Roth Catch-ups stay at $1,000
Day Two
Flexible Spending Account
Reminder that your Flexible Spending Account is most likely a Use-It-Or-Lose-It type of account. Your employer may allow a certain amount to be rolled over to next year or extend billing payments out, but they are not required to. If you have a balance yet this year do your best to use it up before the ball drops on New Year's.
Day Three
Mutual Funds and Capital Gains
As I write this (early December), roughly 58% of actively managed mutual funds are saying they will be kicking out capital gains. This means a tax bill if you own these tax inefficient investments. All of the planned distributions will be above 10% with some going above 30%. Uncle Sam appreciates the tax tipping from these owners😉