Let’s Celebrate
/As Worley Erhart-Graves Financial Advisors celebrates its 25th anniversary in 2025, it is clear how much progress has been made in 25 years. Financial practices have evolved, from navigating Y2K concerns to embracing AI, reflecting a digital and more interconnected world.
In the year 2000, financial practices underwent significant shifts as technology began to have a lasting impact on banking and personal finance. Paper checks remained widely used. Many businesses still relied on manual point-of-sale machines, also known as “knuckle busters,” which required an imprint of the customer’s credit card onto carbon paper slips, later processed by the bank.
Investing in 2000 was heavily influenced by the dot-com boom. Tech stocks were the talk of Wall Street, with many investors flocking to internet companies with expectations of high returns. However, the dot-com bubble burst later that year, revealing the volatility of speculative investments. Mutual funds were sold directly from fund companies by salespeople earning a commission. Banking was still conducted primarily through physical branches, with online banking in its infancy, offering limited functionalities.
Fast forward to 2025, and the financial landscape is markedly different. Paper checks are rare, with digital payments, mobile wallets, and instant transfers dominating personal finance. Point-of-sale systems are sleek, fast, and contactless, enhancing convenience for consumers. Investments can be bought and sold online, 24 hours a day in some cases, with much lower fees. Banking has become almost entirely digital, and cybersecurity paramount.
Every year we update clients on the contribution rates released by the IRS and the Social Security Administration. Here are important numbers to know for 2025.
Due to inflation, Social Security recipients will again receive a cost-of-living increase. Retirement savers with access to an employer-sponsored plan also received an increase in contribution limits for 2025. If you are contributing to an account with an increased limit, be sure to update your contribution rates for next year to take advantage of these changes.
In 2025, the maximum Modified Adjusted Gross Income (MAGI) for making Roth IRA contributions will increase to $246,000 for married couples filing jointly, with phase-out limits beginning at $236,000 MAGI. For single and head-of-household taxpayers, Roth IRA contribution limitations begin at $150,000 with total phase-out at $165,000.
The Indiana 529 tax credit limit remains the same. Contributions by Indiana taxpayers made for tax year 2025, will qualify for the 20% tax credit on contributions up to $7,500 with a maximum credit of $1,500 ($750 for married filing separately). Contributions for the previous tax year to Indiana 529 accounts can now be made through April 15th and applied retroactively.
Starting in 2025, certain investment savings vehicles have new contribution rules for those nearing retirement. They are listed below:
