5 Tax Moves to Boost Your Retirement Savings in 2025
Saving for retirement isn’t as simple as just setting aside money each month.
With changing tax laws and evolving retirement account rules, smart savers know that the way you save matters just as much as how much you save.
2025 brings some important updates that could impact how much you keep for your future. Whether you’re self-employed, running a small business, or managing personal savings, proactive tax planning today can help you retire with confidence tomorrow.
⸻
1. Maximize Contributions to Tax-Advantaged Accounts
Tax laws continue to reward those who invest in accounts like 401(k)s, Traditional IRAs, Roth IRAs, and SEP IRAs. These accounts give you tax breaks either now or in retirement.
If you’re self-employed or own a small business, don’t overlook Solo 401(k)s or SEP IRAs. These offer some of the highest contribution limits available, allowing you to lower your taxable income significantly.
Tip: Even part-time income can make you eligible for a retirement account. Start somewhere.
⸻
2. Take Advantage of Catch-Up Contributions
Once you turn 50, you can make additional “catch-up” contributions to your retirement accounts.
For example, in 2025, those over 50 may contribute an extra $7,500 to a 401(k)—which means your savings can grow faster, and your taxable income goes down.
If you’re behind on your retirement goals, catch-up contributions are one of the best tools to close the gap.
⸻
3. Review Your Roth vs. Traditional Strategy
Roth accounts have seen new incentives in recent tax changes. But that doesn’t mean they’re always better than Traditional IRAs or 401(k)s.
The question is: Do you want to pay taxes now, or later?
• If you expect your tax rate to be higher in retirement, a Roth may help.
• If you want the deduction today, Traditional contributions may be better.
⚙️ A tax advisor can help you run the numbers and decide which strategy fits your situation.
⸻
4. Plan for Required Minimum Distributions (RMDs)
Recent updates have pushed the age for RMDs to 73 (or later, depending on your birth year). But failing to plan could leave you facing a surprise tax bill when those distributions kick in.
If your retirement accounts grow faster than your spending, you’ll need a withdrawal strategy that minimizes unnecessary taxes.
Consider charitable giving strategies or Roth conversions before your RMDs begin.
⸻
5. Don’t Overlook Health Savings Accounts (HSAs)
HSAs aren’t just for medical bills—they’re one of the best retirement tax tools available:
• Contributions are tax-deductible
• Growth is tax-free
• Withdrawals for qualified medical expenses are tax-free
And after age 65, you can withdraw funds for any purpose, taxed like an IRA.
If you’re enrolled in a high-deductible health plan, this is a must-have savings tool.
⸻
Common Retirement Tax Planning Questions
When should I start retirement tax planning?
The earlier in the year, the better. But the next best time is before year-end, when you still have options to adjust contributions, withholdings, and tax strategies.
Should I change my savings plan if tax laws change again?
Tax laws may shift, but the core retirement strategies stay the same: save consistently, use tax-advantaged accounts, and plan ahead.
A tax advisor helps you adjust without reacting emotionally to every change.
Can small business owners save more for retirement?
Yes. Solo 401(k)s, SEP IRAs, and profit-sharing plans allow business owners to save far beyond the limits of a Traditional IRA.
⸻
Ready to Build a Retirement Tax Strategy That Works?
If you’re unsure where to start, we offer a free 15-minute tax consultation to help you plan your savings and avoid unwanted surprises.
Whether you’re self-employed, running a small business, or simply looking to retire smarter, we’ll help you take the next step.
