IRS Increases Contribution Limits and Launches

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401 Contribution: Increases Limits and Launches Super Catch-Up Option for Ages 60-63 in 2025 By IRS 

The IRS has announced that starting in 2025, those aged 50 and up will be able to save more for retirement in workplace plans, particularly through their 401 Contribution options. The annual deferral limit will increase to $23,500, allowing older individuals to maximize their 401 Contribution even further. Catch-up contributions remain at $7,500, enabling individuals aged 50 and older to contribute a total of $31,000 to their 401 Contribution, making retirement savings more accessible.

Notably, workers aged 60 to 63 will benefit from a higher catch-up limit of $11,250 specifically for their 401 Contribution, a change that offers a significant boost to their retirement savings. However, once individuals reach age 64, they will revert to the standard catch-up amount in their 401 Contribution, helping them maintain steady savings.

For IRAs, the contribution limit remains at $7,000, with a catch-up option of $1,000 for those 50 and older, adding another complement to their 401 Contribution. Additionally, the income eligibility ranges for making contributions have increased, allowing even more older Americans to participate and contribute to both IRAs and 401 Contribution plans.

For single taxpayers, the phase-out range rises to $79,000 to $89,000, making it easier to qualify for a 401 Contribution in higher income brackets. For married couples filing jointly, the phase-out range now spans $126,000 to $146,000, broadening the reach of 401 Contribution options to a wider range of earners.

These updates aim to empower older workers to boost their 401 Contribution, strengthening their retirement savings potential. By making 401 Contribution limits more flexible and inclusive, the IRS supports older Americans in securing their financial future with ease. With these expanded options, we may also see increased movement in the housing market, particularly among sellers who have delayed downsizing, using their enhanced 401 Contribution to support life transitions.

These changes to 401 Contribution rules reflect the IRS’s commitment to helping individuals prepare financially for retirement. More flexible 401 Contribution rules, especially for those aged 60 to 63, are anticipated to have a positive impact on retirement savings, ultimately promoting financial stability as people near retirement.

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Senators Investigate KKR’s Apartment Acquisition

A group of lawmakers are investigating KKR’s recent $2.1 billion acquisition of over 5,200 rental units. Senators Elizabeth Warren, Raphael Warnock, Ron Wyden, and Peter Welch have sent a letter to KKR, questioning how this large-scale purchase could affect renters nationwide.

This acquisition marks KKR’s largest-ever purchase of apartment buildings, and the senators fear it could lead to higher rents, worsening the ongoing housing crisis. They highlight a troubling trend where private equity firms have historically profited from increasing rent prices, particularly during economic downturns.

In a recent Market Report, a KKR executive indicated a strategy focused on acquiring distressed properties and raising rental rates, citing a shortage of housing as a factor. This latest deal follows similar billion-dollar purchases by firms like Blackstone and Brookfield, suggesting a growing confidence in rising rents and apartment values.

There is concern about the impact of these acquisitions on communities, particularly for people of color facing displacement due to gentrification and negligent landlord practices. They have requested KKR outline how it plans to set rents, ensure tenant safety, and support long-term tenants, especially older renters and those from marginalized communities.

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Inman Acquires Blueprint to Boost Real Estate Tech

And finally, Inman News has announced its acquisition of Blueprint from Connectiv Holdings LLC. Blueprint claims to be real estate’s premier event for tech startups, Venture Capital and industry players to connect and do business. 

The acquisition aims to enhance Inman’s attempt to innovation in the real estate industry. Inman plans to invest in Blueprint’s growth leading up to its next major event, Blueprint Vegas, scheduled for September 16-18, 2025. Key executives from Blueprint—Martin Kelly, David Hirschman, and Vik Venkatraman—will join Inman, ensuring continuity in leadership and programming.

Emily Paquette, CEO of Inman, emphasized that this acquisition aligns with Inman’s goal to become the premier media platform for the entire real estate ecosystem.

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