332 Front Street South, Suite 501, La Crosse, WI 54601 | www.kaplanfinancial.com | 800.824.8742 or 866.963.8329
Course: Series 65 - Uniform Investment Adviser Law Exam
Date: July 10, 2025
Author: Chuck Lowenstein
Updated by: NEH
Topic: 2025 Tax Updates
Note: This document has been updated to reflect current 2025 tax rates and limits.
As is always the case, a new year brings with it new tax tables from the IRS. Numbers that change each year are never the subject of a question on the exam. The few numbers that change less frequently (such as the maximum annual contribution to an IRA and the annual gift tax exclusion) might appear on the exam, but the choice of answers will never include both the old and the new numbers.
For example, the maximum IRA contribution was $7,000 for 2024 and remains $7,000 for 2025. The exam will not have both amounts as answer choices in the same question since they are identical. We don't know when NASAA will update their questions, so if you see a question about the IRA maximum, the correct answer will be whichever of those numbers is an option.
Even though numbers are never tested, seeing numbers usually helps explain testable concepts. For example, knowing the different contribution limits helps you to answer the question below.
Corporate employees can generally maximize tax-deductible contributions for their retirement through A. a traditional IRA. B. a Roth IRA. C. a 401(k) plan. D. a variable annuity.
Answer: C. For most employees of a corporation, the maximum annual tax-deductible contribution to their 401(k) plan is more than three times as high as to an IRA. Unless specified otherwise, annuities are nonqualified, so contributions to them are not tax-deductible. The maximum annual contribution in 2025 for an IRA is $7,000, while it is $23,500 for employer-sponsored plans. The difference between these two limits is even more significant when the participant is age 50 or older and can make a catch-up contribution.
The annual contribution limit for traditional and Roth IRAs remains $7,000, the same as 2024. The catch-up contribution limit at age 50+ is $1,000.
Single (covered by a plan at work):
Married filing jointly (covered by a plan at work):
Married filing jointly (not covered by a plan at work and spouse is covered by a plan at work):
Remember that traditional IRA deductibility limits change every year and are never tested. However, knowing these numbers helps you know the conditions that could cause an IRA contribution to be nondeductible.
Single:
Married Filing Jointly:
Maximum is $16,000 with a catch-up provision of $3,500 for ages 50-59 and 64 and over, and $5,250 for ages 60 through 63
Maximum is $70,000 (there is no catch-up provision and that is testable)
Maximum is $23,500, catch-up provision remains the same at $7,500
Important New SECURE 2.0 Update: For employees aged 60, 61, 62 and 63 who participate in these plans, the higher catch-up contribution limit is $11,250 instead of $7,500 for 2025. The total limit for 401(k) contributions for those aged 60 to 63 is $34,750 in 2025.
Top rate of 37% is reached at $626,350 for those with single tax status and $751,600 with married-filing-jointly status
Kiddie tax: Anything above $2,600 in unearned income
Top rate of 37% is reached at $15,200 (much, much sooner than personal income taxes)
$13,990,000 per person ($27,980,000 for a married couple)
$19,000 (fifth year in a row of increases). To a non-citizen spouse, it is $190,000.
Note: It is anyone's guess as to how much of this will be included in the exam. NASAA is notoriously slow at updating. We remind you to continue to check the Content Updates because we will announce the appearance of any of these changes.
IRA catch-up provisions will be indexed for inflation so that in the future, the fixed $1,000 will change.
Effective for the 2025 tax year, active participants aged 60 through 63 can contribute the greater of $10,000 or 150% of the 2024 catch-up contribution limit that is indexed for inflation. For 2025, the max catch-up contribution is $11,250.
Employer contributions may be used for qualified student loan repayments.
For those under the age of 59½, one penalty-free (10% tax) withdrawal of up to $1,000 per year may be taken for unforeseeable or immediate financial needs relating to personal or family emergency expenses. Victims of domestic abuse under the age of 59½ can withdraw up to $10,000 from IRAs and 401(k)s without owing the 10% penalty tax.
The unused funds in a Section 529 plan that has been established for at least 15 years may be directly rolled over into a Roth IRA for the benefit of the beneficiary. There is a maximum limit of $35,000.
RMDs are no longer required for Roth 401(k) and 403(b) plans for those reaching age 73 this year.
In an effort to increase individual retirement savings, SECURE 2.0 requires new 401(k) plans established on or after December 29, 2022, to implement an automatic enrollment feature in 2025 unless an exception applies.
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332 Front Street South, Suite 501, La Crosse, WI 54601 | www.kaplanfinancial.com | 800.824.8742 or 866.963.8329