Are you proactively saving for retirement? If so, staying ahead of annual IRS changes can significantly impact your long-term financial health. The IRS has just released the draft of Publication 590-A, “Contributions to Individual Retirement Arrangements (IRAs),” outlining the key updates for the 2025 tax year.
At Royalty Tax Services, your trusted tax preparer in Harrisburg, PA, we believe that understanding these rules is a critical step toward financial empowerment. Let’s break down what this means for your retirement and tax strategy.
What is Publication 590-A?
Publication 590-A is the IRS’s comprehensive guide for anyone contributing to a Traditional or Roth IRA. It covers everything you need to know, including:
- Annual IRA contribution limits.
- Income phase-out ranges that determine your deduction eligibility.
- The rules for rollovers and conversions between account types.
This publication is essential reading for savvy savers, and the 2025 draft reveals some beneficial updates.
Key Changes for 2025: Save More and Plan Smarter
The new draft indicates positive changes that can help you boost your retirement savings. Here’s what to expect:
- Higher Contribution Limits: To keep pace with inflation, the IRS is increasing the amount you can contribute annually to your IRA. This allows you to save more pre- or post-tax money for your future.
- Updated Income Ranges: The income limits (phase-out ranges) for deducting Traditional IRA contributions and for contributing directly to a Roth IRA have been adjusted upwards. This means more individuals and families in Pennsylvania may qualify to make full or partial contributions.
- Clearer Rollover and Conversion Guidance: The draft provides enhanced examples and explanations for transferring funds between retirement accounts, helping you navigate these transactions without accidental tax penalties.
Turn Your Tax Refund into a Wealth-Building Tool
At Royalty Tax Services, we see tax season as an opportunity. Instead of viewing your refund as a simple windfall, we can help you leverage it as a powerful tool for your future. One of the most effective strategies we recommend during our Refund to Wealth Challenge is to directly fund an IRA.
This approach does two things:
- It boosts your retirement savings.
- It can potentially provide a tax deduction for the following year, depending on the IRA type and your income.
Your Local Harrisburg Partner for Retirement Tax Planning
Navigating IRA rules doesn’t have to be a solo mission. As your local tax expert in Harrisburg, Pennsylvania, Royalty Tax Services is here to provide professional income tax filing that integrates seamlessly with your long-term retirement goals.
We go beyond basic, affordable tax preparation in Harrisburg, PA. We offer strategic retirement tax planning to ensure you’re taking full advantage of every opportunity to secure your financial future.
Ready to align your taxes with your retirement goals?
📞 Call or text 717-623-2043 or visit MyRoyaltyTax.com to schedule a consultation. Let’s work together to understand the 2025 IRA updates and create a plan that turns your tax savings into lasting wealth.
