Required Minimum Distribution (RMD), Catch-Up 401k Contribution at Age 50 & Thanksgiving Hours

Required Minimum Distribution (RMD):

As a professional courtesy, we want to remind our clients who are over the age of 72 to contact their bank or investment advisor regarding the required minimum distributions that must be taken from an IRA, SEP, 401(k) or any other qualified tax deferred account. If you turn 73 in 2025 through 2032, the first RMD must taken no later than April 1 of the year following the year you turn 73. After your initial RMD is taken you must take an annual RMD by December 31st each year.

We urge you to contact your investment advisor or bank before 12/31/25 if this applies to you so that you are in full compliance with the tax law. Most advisors, retirement planners and banks automatically handle this, but it is important to be sure you are taking the proper distribution(s).

Additional 401k Contribution at Age 50:

To help older employees save more for retirement in a 401(k) plan, catch-up contributions can be made during the calendar year in which you will turn 50 years old. The catch-up contribution amount for 2025 is $7,500 (total contribution limit is $31,000 for 2025).  The "super" catch-up contribution amount for 60-63 year-olds is $11,250 (total contribution limit is $34,750 for 2025).

The IRA contribution catch-up amount is $1,000 (total contribution limit is $8,000 in 2025).

You should contact your plan administrator to make these catch-up contributions.

In observance of the Thanksgiving holiday, our office will be closed Wednesday - Friday, November 26 – 28. We wish you and your family a Happy Thanksgiving!