City, State/Country – E be like say the new retirement savings rules wey IRS don drop go sweet plenty pipo wey wan save for their old age. If you sabi your way around 401(k) or IRA, next year go dey better for you, because the contribution limits don increase!
For 2026, if you dey participate for 401(k), you fit save up to $24,500. E don increase from $23,500 wey e be this year. Na wah! And as if dat one no reach, 403(b), governmental 457 plans and Thrift Savings Plan join the ginger too! Dem go also benefit from this sweet increase.
No forget say if you dey 50 years and above, you get chance to chop the ‘catch-up contribution’. This one dey rise from $7,500 to $8,000 next year, turning ya total savings to $32,500, talkless of those wey dey between 60-63 wey fit add extra $11,250 to their savings – big ups to you sharp pipo! (Just dey watch your age oh, if you reach 63, you go fit shop more).
But here come the twist! Anyone wey dey earn more than $145,000 for FICA wages, their catch-up contributions go dey treated as regular contributions. So, make sure your pocket dey okay before you plan this one. No go dey run around like chicken wey don chop pepper!
IRS don also adjust the income thresholds for IRA vehicles. Single filers, if your income no pass $40,250, you dey eligible get some sweet retirement savings contributions. Ah, money matter no be beans oh! If you dey join joint marriage, e get as your combined income fit hit $80,500.
For small business workers wey dey use SIMPLE accounts, plan to save $17,000 next year, from $16,500 this year. And you go get catch-up limit of $4,000, from $3,500. Just remember say you fit make smart investments now so that when the new year waka come, you go fit smile reach your eye!”
As 2025 dey close up, e clear say the economy no be small matter. Work dey hard for small business owners wey wan carry better retirement plan dey put on top their head. Pipo still dey stress about money, as 70% of workers dey worry about their cash flow. Make you wise up and sabi how to tackle the remaining year well well before the next one drop!
Gather your family, split plenty palm wine and chat about these latest updates. E sure say with these new changes, you go fit save better. No forget, planning well na the key to financial freedom!
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