In the market -
The latest Reuters poll of 500 economists reveals an encouraging outlook: global economic growth is expected to maintain a solid 3.1% pace this year, with a projected 3% for 2025. This marks a significant upgrade from earlier forecasts, primarily driven by unexpected economic resilience. The U.S. continues demonstrating remarkable strength, outpacing its G10 peers with 2.6% growth this year. Meanwhile, Asia shows broad resilience, with India leading as the fastest-growing major economy. Japan's recent performance even suggests potential shifts in its long-standing monetary policies. Looking ahead, most economies are anticipated to see lower interest rates, though the U.S. may follow a different path. To see more, check out: https://www.reuters.com/markets/global-market-data/global-economy-set-cruise-solid-3-growth-rate-next-year-2024-10-31/
In Medicare -
In November, the Centers for Medicare &Medicaid Services (CMS) released the 2025 premiums, deductibles, and coinsurance amounts for the Medicare Part A and Part B programs. We’re focused on the biggest change below: The standard monthly premium for Medicare Part B enrollees will be $185, up $10.30 from 2024. The annual deductible will increase to $257. This increase is mainly due to projected price changes and assumed utilization increases that are consistent with historical experience. For more information on the 2025 Medicare Parts A and B premiums and deductibles (CMS-8086-N, CMS-8087-N, CMS-8088-N), please visit https://www.federalregister.gov/public-inspection.
In Retirement -
The Internal Revenue Service has released new limits for the coming year.
- Individual Retirement Accounts (IRAs) IRA contribution limits remain unchanged in 2025 at $7,000. Catch-up contributions for those over age 50 also remain at $1,000, for a total limit of $8,000.
- Roth IRAs The income phase-out range for Roth IRA contributions increases to $150,000-$165,000 for single filers and heads of household, a $4,000 increase. For married couples filing jointly, the phase-out will be $236,000 to $246,000, a $6,000 increase. Married individuals filing separately see their phase-out range remain at $0-10,000.
- Workplace Retirement Accounts Those with 401(k), 403(b), 457 plans, and similar accounts will see a $500 increase for 2025, the limit rising to $23,500. Those aged 50 and older will still be able to contribute an extra $7,500, bringing their total limit to $31,000.
- SIMPLE Accounts A $500 increase in limits for 2025 gives individuals contributing to this incentive match plan a $16,500 stoplight.
Keep in mind that we provide updates for informational purposes only, so consult with your tax professional before making any changes to your tax strategy. You can also contact our offices, and we can provide you with information about the pending changes.