2025 Tax Season Updates & Key Deadlines
2025 Tax Season Updates & Key Deadlines
As we bid farewell to January, we hope your month was filled with positivity, productivity, and perhaps a few moments of well-deserved relaxation. As part of our commitment to proactive service, we want to provide you with important updates on the timeline for tax documents, retirement contribution deadlines, and required minimum distributions (RMDs) in 2025.
Tax Documents. For the 2024 tax year, Schwab anticipates delivering the initial batch of 1099s by the end of February, with additional corrected 1099s posted in March and April. Corrected 1099s are typically issued due to investment reclassifications, late reporting from fund companies, or adjustments to dividend and capital gain distributions.
To ensure accuracy and reduce the risk of needing to amend your tax return due to potential updates or corrections, consider waiting until April 15th before filing. If you receive a corrected 1099 after filing, we advise consulting with your tax professional to determine whether an amendment is necessary.
Retirement Plan Contributions. Certain retirement accounts allow contributions for the prior tax year (2024) until the tax filing deadline on April 15, 2025. If you plan to make a last-minute contribution, please reach out to us well in advance of the deadline.
As a friendly reminder, here are the 2024 contribution limits:
- Traditional or Roth IRA: $7,000 ($8,000 if age 50+)
- SEP IRA: 25% of compensation or $69,000 (whichever is lower)
- Note: SEP IRA contributions follow the business tax filing deadline, which may be extended beyond April 15th, if applicable.
- 401(k) Employer Contributions: Varies by plan
- Note: Most employer contributions must be made by December 31st, but some plans allow flexibility – please check with your employer.
Required Minimum Distributions (RMDs). With the passing of Secure Act 2.0, the RMD starting age increased to 73. This means anyone turning 73 in 2025 must begin taking required minimum distributions from their applicable retirement accounts. If you have questions or would like to explore tax-efficient withdrawal strategies, please don’t hesitate to reach out.
Proactive Planning in the Year Ahead
We are committed to being proactive on your behalf and will continue providing updates throughout the year. If you or someone you know would like to review tax-efficient withdrawal strategies, retirement contributions, or other financial planning opportunities, we’d be happy to help.
It is a privilege to navigate life and money with you, and we are incredibly grateful for your trust in us as your financial partners.
With rooted optimism,
The Tschetter Group Team
Important Disclosures
The content of this article is provided for general information purposes only and is presented solely as our opinion. The information was compiled from sources that we believe to be reliable, however, we cannot guarantee its accuracy, completeness, or timeliness. This article is based on the information available to us as of the date of this article and may change at any time. Tschetter Group does not provide tax and legal advice. Please consult your legal and tax professional for specific information.