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2025 401(k) Contribution Limits Announced; New Super Catch-Up for Ages 60-63

The IRS officially announced the new 401(k) contribution limits for 2025 (full news release), which also included a new “super catch-up” allowance for people who are ages 60-63 at year-end 2025. Strangely, it goes back down once you are age 64. I hadn’t heard of this before now. As usual, by “401(k)” I mean that it applies to 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan.

The 2025 base 401(k) contribution limit is increased to $23,500, up from $23,000. This WSJ article (paywall) has a handy chart for reference.

The 2025 base IRA contribution limit remains at $7,000 (subject to income limits). Taken together, “maxing out” your IRA and 401(k) now takes more than $30,000 a year even ignoring any catch-ups. That’s a lot, but whatever you can cram in there may get roughly a 30% boost towards your final retirement balance.

Fidelity Rewards Visa Credit Card Review: 2% Flat Cash Back, No Annual Fee ($150 Sign-Up Bonus, $100 TSA PreCheck Credit)

(Update November 2024: This card has added a Global Entry/TSA PreCheck credit worth up to $100 every four years. Might be handy for existing cardholders that have this as an idle card. Currently a $150 sign-up bonus for new customers as well. Updated full review below.)

Back in 2019, Fidelity condensed their rewards credit card line-up to a single card, the Fidelity® Rewards Visa Signature Card issued by Elan Financial Services (subsidiary of US Bank). There is currently a $150 bonus if you spend $1,000 in the first 90 days. It earns a flat 2% cash back when directed to an eligible Fidelity Investments account. Here are the highlights:

  • Unlimited 2% cash back, when redeemed into an eligible Fidelity account. You could pick a brokerage account, IRA, or 529 plan.
  • No annual fee.
  • No foreign transaction fees.
  • NEW: $100 credit towards Global Entry/TSA PreCheck application fees. Valid once every four years.
  • BACK: Secondary Auto Rental Collision Damage Waiver. As with many other cards, this is secondary to your personal auto insurance, but will help cover the deductible if applicable.

Details on the sign-up bonus:

Receive 15,000 Bonus Points – which equals $150 cash back, when deposited into an eligible Fidelity account – after you make at least $1,000 in eligible net purchases withing the first 90 days of account opening.2 Existing or previous Fidelity Visa Signature cardmembers are not eligible for this offer if you have received a new account bonus for this product in the last five years.

Details on the Global Entry/TSA PreCheck benefit:

Receive up to 10,000 Reward Points every four years when you apply for either Global Entry® or TSA PreCheck®. That’s worth up to $100 when deposited into an eligible Fidelity® account,¹ once every four years. Be sure to pay the application fee using your card to be eligible.

Eligible Fidelity accounts. The 2% rewards value applies only to points redeemed for a deposit into the following active Fidelity accounts:

  • Fidelity Cash Management Account
  • Fidelity Brokerage account
  • Fidelity-managed 529 account
  • Fidelity Retirement account (IRA, Roth IRA, SEP-IRA, Rollover IRA)
  • Fidelity Go account (robo-advisor)
  • Fidelity Charitable Giving Account (donor-advised fund)
  • Fidelity HSA

My favorite option is actually the 529 plan option if you have kids, because it is the perfect way to quietly grow a little college stash and not just spend your rewards away on a dinner or gadget. Contributions get to grow tax-free with minimal paperwork towards your future college expenses. The IRA option is okay, but you have to be careful to not exceed the annual contribution limits and track your rewards against your other contributions.

I also like that there is an auto-redemption option. You can enable a feature to automatically cash in your points each time it reaches $25 worth and auto-deposit into your 529 plan (or brokerage account, etc). Since the 529 plan will also auto-invest your contribution, it’s all on auto-pilot. No redemptions, no investment decisions, no wasted frequent flier miles, etc.

(Side tip: Grandparents can also set it up to direct their own credit card rewards to automatically redeem into your child’s 529 plan account as well…)

Let’s say you spend $2,000 a month on this card. 2% cash back means earning $40 a month in cash back. Let’s also say you put this into a 529 that earns 6% a year. If you started when your kid was born and waited 20 years until their senior year of college, that would amount to $18,574! I plugged it into this savings calculator.

Concerns? The only main drawback with this card is that it is actually run by Elan Financial, and whenever Fidelity partners with these third-parties, it’s not a perfect match. Elan doesn’t have the same level of customer service as Fidelity, or American Express for that matter. They will give you a harder time with merchant disputes and fraud refunds, for example. I’ve always gotten them worked out in the end, but it took more effort in my experience. I personally wouldn’t want to deal with them on any type of insurance claim.

Bottom line. I think everyone who can handle a cash back credit card (i.e. you carry no high interest credit debt) should have a 2% flat cash back card that applies to all purchases. The Fidelity® Rewards Visa Signature Card can make sense for Fidelity customers because you can set aside your rewards automatically and save money towards a Fidelity 529 college savings or retirement account. I would try to apply when there is a sign-up bonus.

Visualizing Asset Allocation Choices: Risk vs. Return vs. Probability

Howard Marks published another Oaktree Capital memo recently, Ruminating on Asset Allocation, which included several insights about asset classes and how to create a portfolio. I recommend reading the entire thing, but here are a few highlights … [Read the rest]

Savings I Bonds November 2024: 1.20% Fixed Rate, 1.91% Inflation Rate (3.11% Total for First 6 Months)

Update: Savings I Bonds bought from November 1, 2024 through April 30, 2025 will have a fixed rate of 1.20%, for a total rate of 3.11% for the first 6 months. As a quick and dirty comparison, the nominal yield on 5-year Treasury bonds is currently … [Read the rest]

Groupon: Costco New Membership $65 w/ $45 Costco Gift Card

The Groupon deal for a new Costco Gold Star Membership is back, this time for the regular price of $65 you can get the following: 1-year Gold Star membership ($65 normally by itself) Membership card for the Primary Cardholder and one … [Read the rest]

Bilt Mastercard: Earn Rewards For Paying Rent w/ Any Landlord (November 1st Rent Day / Avios Transfer Bonus)

Update for Rent Day 11/1. For Rent Day on Friday 11/1, Bilt Rewards is offering the following additional perks. I got my Hilton Gold status last month with no issues. Note the grocery perk is actually for 10/30 and 10/31. 50% bonus on … [Read the rest]

Acorns Early 1% Match on Kid Custodial Accounts / Acorns Later 3% Match on IRA Contributions

Acorns, known for their "Round-Ups" on purchases that encourage recurring small savings of spare change and beyond, also has a match program for IRA contributions. They also just added a new match program for UTMA/UGMA custodial accounts for … [Read the rest]

IRA and 401k Accounts Can Earn You 30% More After 40 Years

We're all told that we should use IRA and 401k accounts to save for retirement due to their great tax benefits. But how valuable exactly are those benefits? 🤔 A huge difference? A little difference? This Morningstar article crunches … [Read the rest]

Pepper Rewards App: 8% Back on Amazon Gift Cards for 15 Days (New Users) + Crazy Flash Sales + AmEx Offer

(10/29 Only Flash Sales: Sam's Club 14X/142% Off (Works at Walmart too!). Amazon Fresh 14X/14% Off (Works at Amazon too!). See new offers daily in-app with the Inbox 📩 envelope icon. Confirm the Boosts on screen before you click "Buy gift … [Read the rest]

Robinhood Gold Review: 1% Deposit Boost Ends 11/25/24

Update October 2024: Well, that didn't last very long. Right as competitors rush to copy the feature, Robinhood sends me a message that the last day to get your 1% Deposit Boost is November 25, 2024. Update June 2024: The 1% Deposit Boost for … [Read the rest]

Capital One Shopping: $40 Bonus w/ Browser Plugin Install (Actually Useful)

Capital One Shopping is a shopping rewards portal that works via a web browser plugin, while also looking for eligible coupons and lower prices from different sellers. When you shop through an eligible merchant, you earn cashback rewards. Right … [Read the rest]

HealthyWage Review: Bet on Yourself, Get Paid To Lose Weight (Highest-Ever 31% Prize Boost)

(31% Prize Boost Promo: Click this special link for extra 31% added to your prize. Ends soon on 11/1. Look for the banner on top. On a $550 prize, that's a $170 increase which transforms the ROI from 11% to 44%, which is the highest boost I've … [Read the rest]