Retirement insights from a Colorado PERA perspective

A distant view shows a mountainous landscape with sloping peaks, green trees in the foreground, and a cloudy sky above.

<a href="https://www.planadviser.com/more-states-require-personal-finance-courses-as-financial-literacy-declines/" target="_blank" rel="noreferrer noopener" class="broken_link">More States Require Personal Finance Courses as Financial Literacy Lags | Planadviser</a>



There’s been a trend in recent years of states passing legislation requiring personal finance education for high school graduation. As of the end of 2025, 39 states—including Colorado—now have a statewide financial literacy requirement in place.



<a href="https://www.axios.com/2026/03/04/401k-retirement-plan-withdrawal-vanguard" target="_blank" rel="noreferrer noopener" class="broken_link">401(k) Hardship Withdrawals Hit Record High — But Investments Still Up | Axios</a>



The number of American workers requesting hardship withdrawals from their 401(k) accounts hit a new high last year, according to a report from Vanguard. The increase in withdrawals could be due to increased financial pressure as well as legislation that made it easier to withdraw money. At the same time, a separate report found account balances were up in 2025.



<a href="https://crr.bc.edu/trump-accounts-a-primer-for-parents/" target="_blank" rel="noreferrer noopener">Trump Accounts: A Primer for Parents | Center for Retirement Research</a>



Beginning later this year, parents will be able to open so-called “Trump accounts” to jumpstart their children’s savings. The accounts come with a $1,000 starting contribution, and like other savings accounts, they also come with a number of rules and regulations around who can open an account, who can contribute and how much, and when distributions are allowed.



<a href="https://www.asppa-net.org/news/2026/3/the-unappreciated-and-underused-savers-credit/" target="_blank" rel="noreferrer noopener">The Unappreciated and Underused Saver’s Credit | American Society of Pension Professionals &amp; Actuaries</a>



Many workers are unaware of the Saver’s Credit, which allows eligible individuals to receive a tax credit for a portion of their contributions to an employer-sponsored retirement plan. The maximum credit is $1,000 for individuals ($2,000 for married couples filing jointly) and workers must meet income requirements in order to claim the credit.



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News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: 39 States Now Require Personal Finance Education

<a href="https://wallethub.com/edu/best-and-worst-states-to-retire/18592" target="_blank" rel="noreferrer noopener">Best States to Retire in 2026 | WalletHub</a>



Personal finance website WalletHub released its annual list of best states for retirees and Colorado made the top five. The number-one spot went to our neighbors to the north in Wyoming. Colorado came in at number four, earning high scores on factors related to health care, such as number of medical facilities and availability of services for older residents.



<a href="https://coloradosun.com/2026/01/29/colorado-now-has-6-million-people/" target="_blank" rel="noreferrer noopener">Colorado Now Has 6 Million People, Even Amid Slowing Population Growth | The Colorado Sun</a>



The Centennial State’s population continues to grow, albeit significantly slower than in recent years. According to the latest data from the State Demography Office, Colorado’s population grew at a rate of 0.4% in 2025, pushing the state’s population above 6 million for the first time.



<a href="https://www.transamericainstitute.org/research/publications/details/retirement-realities-retiree-experience-survey-2025" target="_blank" rel="noreferrer noopener">Retirement Realities: The Experience of Retirees | Transamerica Institute</a>



A new report from the Transamerica Center for Retirement Studies and Transamerica Institute includes survey responses from American retirees on their retirement experiences and perspectives. Among the key findings: 66% of retirees say their standard of living has remained the same in retirement, 47% plan to rely on their relatives and friends for long-term needs, and 69% wish they had saved more money for retirement consistently.



<a href="https://www.cnbc.com/2026/02/04/retirement-savings-lost-and-found.html" target="_blank" rel="noreferrer noopener">Retirement Savings &#8216;Lost and Found&#8217; Helps Locate Old 401(k)s, Pensions | CNBC</a>



Since the U.S. Department of Labor launched its online lost-and-found database for retirement plans, tens of thousands of people have logged on and found information on an old plan. The agency said more than 69,000 people found an old 401(k), pension, or other plan last year. Right now, the database is limited to data for people who are 65 or older.



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News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: Which States are Best for Retirement?

The IRS recently announced adjustments to marginal tax rates, retirement plan contribution limits, and other provisions that will be helpful for financial planning in the new year.



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">2025 0BBBA updates</h2>



While most of the changes below apply to tax year 2026, the federal tax and spending bill known as the One Big Beautiful Bill Act (OBBBA) made some important changes that apply to tax year 2025.



Notably, the standard deduction for 2025 increased to $15,750 for single tax filers and $31,500 for married couples filing jointly.



The OBBBA also established <a href="https://www.irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-working-americans-and-seniors" target="_blank" rel="noreferrer noopener">a new tax deduction for taxpayers who are at least 65 years old</a>. For tax years 2025 through 2028, eligible seniors can deduct an additional $6,000 from their taxable income. <a>The deduction phases out for individuals with modified adjusted gross income over $75,000.</a>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">2026 retirement plan contribution limits</h2>



In the new year, employees <a href="https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500" target="_blank" rel="noreferrer noopener">will be able to set aside more money</a> in defined contribution retirement accounts such as 401(k), 403(b), and 457 plans.



The maximum amount a person can contribute to those plans is $24,500 for 2026, an increase of $1,000 from 2025. The catch-up contribution limit for most employees who are 50 or older will increase to $8,000.



Under the SECURE 2.0 Act, workers who are 60, 61, 62, or 63 have a higher catch-up contribution limit. That limit remains unchanged for 2026 at $11,250.



For individual retirement accounts (IRAs), the annual contribution limit will increase to $7,500 in 2026 and the catch-up contribution limit will be $1,100.



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">2026 HSA/FSA contribution limits</h2>



The amount of money workers can contribute to medical savings accounts also will increase in 2026.



<ul>
<li>HSA:&nbsp;Individuals enrolled in a high deductible health plan (HDHP) with a health savings account (HSA) will be able to contribute up to $4,400, and those with family coverage will be able to save a maximum of $8,750.</li>



<li>FSA:&nbsp;For workers who don’t have an HDHP with an HSA and instead use a flexible spending account (FSA), the maximum contribution for 2026 is $3,400. For plans that allow unused balances to roll over, the maximum amount that can be rolled over will increase to $680.</li>
</ul>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">2026 tax rates</h2>



Below are updated marginal tax rates for single taxpayers and married couples filing jointly. Visit&nbsp;<a href="https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill" target="_blank" rel="noreferrer noopener">the IRS website</a>&nbsp;for more tax tables and additional details.



Note that since these changes are for tax year 2026, they will generally apply to tax returns filed in 2027;&nbsp;<a href="https://copera.org/pera-on-the-issues/updated-tax-brackets-contribution-limits-and-more-to-know-for-2025" target="_blank" rel="noreferrer noopener">2025 tax rates</a>&nbsp;will apply to returns filed in 2026.



<ul>
<li>37% for incomes over $640,600 ($768,700 for married couples filing jointly)</li>



<li>35% for incomes over $256,225 ($512,450 for married couples filing jointly)</li>



<li>32% for incomes over $201,775 ($403,550 for married couples filing jointly)</li>



<li>24% for incomes over $105,700 ($211,400 for married couples filing jointly)</li>



<li>22% for incomes over $50,400 ($100,800 for married couples filing jointly)</li>



<li>12% for incomes over $12,400 ($24,800 for married couples filing jointly)</li>



<li>10% for incomes of $12,400 or less ($24,800 for married couples filing jointly)</li>
</ul>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">2026 standard deduction</h2>



The standard deduction for 2026 will increase to $16,100 for single tax filers and $32,200 for married couples filing jointly.



Taxpayers who are 65 or older can take an additional standard deduction, which is also adjusted for inflation. For tax year 2026, that amount is $2,050 for single taxpayers and $1,650 for married taxpayers or surviving spouses.



Visit <a href="https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill" target="_blank" rel="noreferrer noopener">the IRS website</a> for more information on these and other tax changes.



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">PERA benefits and taxes</h2>



Colorado PERA benefits are subject to federal income tax, as well as applicable state and local taxes. PERA retirees who would like to update their tax withholding can do so by&nbsp;<a href="https://www.copera.org/member-login-registration" target="_blank" rel="noreferrer noopener">logging in</a>&nbsp;to their secure member account or completing a paper Form W-4P.



Retirees and benefit recipients can expect to receive their 1099-R tax forms for tax year 2025 in January 2026.



Learn more at&nbsp;<a href="https://www.copera.org/taxes-on-benefits" target="_blank" rel="noreferrer noopener">copera.org/taxes-on-benefits</a>.

IRS Releases 2026 Tax Brackets, Contribution Limits, Other Tax Updates

<a href="https://www.denver7.com/lifestyle/health/colorado-becomes-first-state-to-cap-prescription-drug-prices-starting-with-enbrel" target="_blank" rel="noreferrer noopener">Colorado Becomes First State to Cap Prescription Drug Prices | Denver7</a>



After a lengthy process, Colorado’s Prescription Drug Affordability Board has for the first time set a price cap on a prescription medication. The board declared Enbrel, an injectable drug for autoimmune diseases, unaffordable last year before deciding to institute the price cap.



<a href="https://www.nbcnews.com/health/health-care/government-shutdown-medicare-medicaid-health-programs-rcna235052" target="_blank" rel="noreferrer noopener">What Government Shutdown Means for Medicare, Medicaid and Other Health Programs | NBC News</a>



As of publishing time, the partial shutdown affecting the federal government is still in effect as Congress remains stalled in its efforts to reopen government agencies. While essential programs like Medicare and Medicaid are still operating through the shutdown, they’re largely working under contingency plans with limited staff and resources.



<a href="https://www.planadviser.com/42-of-americans-on-track-for-retirement-per-vanguard/" target="_blank" rel="noreferrer noopener" class="broken_link">42% of Americans on Track for Retirement, per Vanguard | PLANADVISER</a>



A new survey finds while more American workers have access to retirement plans through their employers, less than half are likely to enter retirement with enough money to support their lifestyles. The growth in access to retirement plans has heavily favored defined contribution plans like 401(k)s, with the percentage of workers who have access to a defined benefit pension plan dropping to 23%.



<a href="https://www.investopedia.com/usd2-trillion-left-in-401-k-s-shows-you-can-forget-money-11824199" target="_blank" rel="noreferrer noopener" class="broken_link">$2 Trillion Left in 401(k)s Shows You Can Forget Money | Investopedia</a>



If you’ve held a variety of jobs in the private sector over the course of your career, you may have left behind some retirement savings without even realizing it. A recent report found there are nearly 32 million employer-sponsored retirement accounts like 401(k)s that are sitting untouched. Those accounts hold more than $2 trillion in total, or an average of $67,000 each.



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News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: Colorado Sets First Price Cap on Prescription Drug

<a href="https://www.denver7.com/follow-up/state-unveils-10-year-plan-to-address-needs-among-colorados-growing-older-population" target="_blank" rel="noreferrer noopener">State Unveils 10-Year Plan to Address Colorado&#8217;s Growing Older Population | Denver7</a>



The State of Colorado has released a strategic plan that aims to address the needs of older citizens over the next decade. The plan incorporates five goals to support the well-being of aging Coloradans, from improving access to health care and other services to boosting economic security.



<a href="https://www.cnbc.com/2025/08/14/social-security-90-anniversary-future-changes.html" target="_blank" rel="noreferrer noopener">Social Security Turns 90. Here’s What Could Happen to Future Benefits | CNBC</a>



Ninety years ago this month, President Franklin D. Roosevelt signed the Social Security Act, creating the Social Security program that has become a vital source of income for many aging and disabled Americans. As the program hits a major milestone, there are multiple efforts underway to improve Social Security’s finances so it will remain secure going forward.



<a href="https://apnews.com/article/trump-crypto-401k-private-equity-retirement-plans-d7fdae32d904c9454f4d4eb0b12b88ef" target="_blank" rel="noreferrer noopener">Trump Opens the Door for Private Equity and Crypto as 401(k) Options | AP News</a>



President Trump signed an executive order that will allow employer-based retirement plans like 401(k)s to include private assets—such as private equity, cryptocurrency, or real estate—in their investment offerings. It’s not yet clear what those types of funds might look like, and experts say workers will want to carefully consider risks and costs associated with such assets.



<a href="https://www.investopedia.com/most-americans-know-having-a-will-is-important-yet-less-than-a-third-have-one-11791679" target="_blank" rel="noreferrer noopener" class="broken_link">Most Americans Know Having a Will is Important, Yet Less Than a Third Have One | Investopedia</a>



A recent survey found the number of Americans who have created a will has declined, despite a majority of people understanding the importance of having one. Fewer than a quarter of people who responded to the Caring.com survey said they have a will, down from 33% in 2022.



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News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: Colorado Releases 10-Year Plan on Aging

<a href="https://coloradosun.com/2025/05/20/colorado-aging-demographics/" target="_blank" rel="noreferrer noopener">Colorado’s Median Age is Nearing 40 — and Getting Older. Here’s What That Looks Like. | The Colorado Sun</a>



Colorado has long been one of the “youngest” states in the country as measured by median age of its population, but that’s changing as birth rates and migration into the state have declined. The Centennial State’s median age has crept up to 37.9 years old, which is still one of the lowest in the nation, but our state is now aging at the third-fastest rate.



<a href="https://www.kiplinger.com/retirement/401ks/new-bill-would-lower-age-to-contribute-to-401k-to-18-from-21" target="_blank" rel="noreferrer noopener">New Bill Would Lower Age to Contribute to 401(k)s to 18 from 21. What You Need to Know | Kiplinger</a>



Federal lawmakers have reintroduced a bill that seeks to expand access to employer-based retirement plans like 401(k)s for younger workers. The Helping Young Americans Save for Retirement Act would lower the minimum required age to 18 from 21 and make it easier for employers to offer plans to those workers.



<a href="https://www.aarp.org/health/conditions-treatments/fda-approves-alzheimers-blood-test/" target="_blank" rel="noreferrer noopener">What to Know about the First FDA-Cleared Blood Test for Alzheimer’s Disease | AARP</a>



The Food and Drug Administration has for the first time given approval to a blood test that can help diagnose Alzheimer’s disease. Diagnosing Alzheimer’s traditionally involves brain imaging and invasive procedures like lumbar punctures, so doctors hope a simple blood test will make it easier to identify the disease. &nbsp;



<a href="https://www.realsimple.com/signs-you-are-aging-well-11739429" target="_blank" rel="noreferrer noopener" class="broken_link">5 Subtle Signs You’re Aging Well, According to Longevity Experts | Real Simple</a>



We hear a lot about aging and some of the health concerns and other issues that can arise, but how do you know you’re aging well? Here are five things that medical experts say are good signs you’re living your best life as you get older.



News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: Colorado is Getting Older Faster

<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.cbsnews.com/news/when-will-i-get-my-2025-tax-refund/" target="_blank" rel="noreferrer noopener">Will the Expected IRS Staff Cuts Delay my 2025 Tax Refund? | CBS News</a></h2>



The federal government’s downsizing efforts have extended to the Internal Revenue Service, where thousands of positions are expected to be cut in the middle of the busy tax season. While most taxpayers likely won’t encounter any trouble with their returns, there may be delays for anyone who needs to reach out to the IRS for customer service.



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.forbes.com/sites/dandoonan/2025/03/03/the-unsung-economic-engine-retiree-pension-spending/" target="_blank" rel="noreferrer noopener">The Unsung Economic Engine: Retiree Pension Spending | Forbes</a></h2>



An annual analysis from the National Institute on Retirement Security highlights the significant contributions retirees make to local and national economies. Their pension spending results in $1.5 trillion in economic output and supports 7.1 million jobs nationwide, according to NIRS. On a more local level, PERA <a href="https://www.copera.org/pera-on-the-issues/measuring-the-impact-of-4-5b-in-annual-retirement-benefits-in-colorado" target="_blank" rel="noreferrer noopener">paid $4.55 billion in benefits</a> to more than 114,000 retirees who lived in Colorado 2023, resulting in $7.1 billion in economic output and supporting more than 28,000 jobs.



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://401kspecialistmag.com/401k-millionaire-ranks-grew-27-in-2024-fidelity/" target="_blank" rel="noreferrer noopener">401(k) Millionaire Ranks Up 27% in 2024, Says Fidelity | 401k Specialist</a></h2>



Retirement plan recordkeeper Fidelity says its data show a significant increase in the number of people with over a million dollars saved for retirement last year. The company noted a 27% increase in 401(k) “millionaires” over the course of 2024, most of them members of the Baby Boom generation and Generation X. On average, they’ve been saving for 26 years and contribute 17% of their income to their retirement accounts, according to Fidelity.



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.mcknightsseniorliving.com/news/more-older-adults-living-disability-free-lives-and-thats-extremely-encouraging-researcher-says/" target="_blank" rel="noreferrer noopener">More Older Adults Living Disability-Free Lives, and That’s ‘Extremely Encouraging,’ Researcher Says | McKnight&#8217;s Senior Living</a></h2>



We know people tend to live longer than they did generations ago, and new research sheds some light on the quality of that extended lifespan. A recent analysis finds that the percentage of older Americans who say they’re living without a disability has increased in recent years—reaching 65% in 2017.



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News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: Will IRS Staff Reductions Affect Tax Filing Season?

<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.pbs.org/newshour/economy/how-the-stock-market-defied-expectations-in-2024-by-the-numbers" target="_blank" rel="noreferrer noopener">How the Stock Market Defied Expectations in 2024, by the Numbers | PBS News</a></h2>



2024 was a great year for the stock market. The S&amp;P 500, for example, notched dozens of all-time records as stocks soared throughout the year. Here are more notable numbers from the market’s performance. Note that PERA’s 2024 investment performance data won’t be available until the Annual Comprehensive Financial Report is released in June.



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://finance.yahoo.com/personal-finance/banking/article/do-we-want-high-or-low-interest-rates-223031516.html" target="_blank" rel="noreferrer noopener">Understanding the Fed&#8217;s Rate Decisions: Do We Want High or Low Interest Rates​? | Yahoo Finance</a></h2>



The past several years have been notable for the Federal Reserve’s interest rate moves—the Fed began raising its key interest rate in 2022 and it remained high through much of 2024 before the Fed began lowering the rate in September. It’s not always easy to understand the implications of these decisions, so here are some pros and cons of high and low interest rates for various financial situations.



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.cnbc.com/2025/01/05/how-to-maximize-your-401k-for-2025.html" target="_blank" rel="noreferrer noopener">Here&#8217;s How to Maximize Your 401(k) Plan for 2025 with Higher Limits, Bigger Catch-Up Contributions | CNBC</a></h2>



If you’re saving additional money for retirement in a PERAPlus 401(k) or 457 Plan, you have the opportunity to boost your savings even more this year. The amount of money you can contribute to those plans is going up in 2025, and there’s also a new, higher catch-up contribution limit for workers who are getting closer to retirement.



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.investopedia.com/how-to-make-financial-resolutions-you-can-stick-to-in-2025-8762615" target="_blank" rel="noreferrer noopener" class="broken_link">How To Make Financial Resolutions You Can Actually Stick To In 2025 | Investopedia</a></h2>



It’s that time of year when many of us are setting intentions and resolutions for the new year. If you’re making money goals, here are some tips for making sure they’re realistic and achievable so you’re set up for success.



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News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: The 2024 Stock Market by the Numbers

<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://thehill.com/homenews/5013493-social-security-bill-senate/" target="_blank" rel="noreferrer noopener">Social Security Reform Bill Awaits Senate Vote Amid Uncertainty | The Hill</a></h2>



The Social Security Fairness Act, a federal bill that would repeal Social Security’s Windfall Elimination Provision and Government Pension Offset, passed the U.S. House in November. The bill is now awaiting action in the Senate, where its fate is increasingly uncertain with just days left for lawmakers to pass legislation before a new Congress begins.



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.investopedia.com/lost-track-of-your-old-401-k-accounts-a-new-service-could-help-recover-the-money-8749171" target="_blank" rel="noreferrer noopener" class="broken_link">Lost Track Of Your Old 401(k) Accounts? A New Service Could Help Recover The Money | Investopedia</a></h2>



The U.S. Department of Labor is getting ready to launch a database to help workers find old retirement accounts. The so-called retirement savings lost and found aims to make sure workers can find and access their 401(k) savings when they switch jobs rather than leaving that money behind. The database should be up and running by the end of the year.



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.fastcompany.com/91236800/retirement-saving-spending-psychology" target="_blank" rel="noreferrer noopener">Retirement Saving and Spending Can Be Complicated. Here&#8217;s What Psychology Says | Fast Company</a></h2>



When making the transition from regular, full-time work into retirement, many people find themselves struggling to move from a saving mindset to a spending mindset. While every person’s situation is different, principles of psychology can help explain why that transition can be so difficult.



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.kiplinger.com/personal-finance/ways-to-maximize-your-end-of-year-philanthropy" target="_blank" rel="noreferrer noopener">Five Ways to Maximize Your End-of-Year Philanthropy | Kiplinger</a></h2>



The end of the year is a popular time to give money to various causes. If you’re thinking of giving this holiday season, here are some things to keep in mind to ensure your donation makes an impact.



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News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: WEP/GPO Bill’s Fate Uncertain in Final Days of Congress

Editor&#8217;s note: Under the federal tax and spending bill known as the One Big Beautiful Bill Act, the standard deduction for 2025 increased to $15,750 for single tax filers and $31,500 for married couples filing jointly.



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The new year is mere weeks away. To make sure taxpayers are informed and prepared, the IRS announced inflation adjustments for many tax provisions in 2025, including marginal tax brackets and retirement account contributions.



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Retirement plan contribution limits</h2>



The IRS announced higher contribution limits for 401(k), 403(b) and 457 plans next year.



The maximum amount a worker can contribute to those plans is $23,500 in tax year 2025, an increase of $500. The catch-up contribution limit for most plan participants age 50 and older remains unchanged at $7,500.



Beginning in 2025, some older workers can make additional catch-up contributions. As part of the SECURE 2.0 Act, plan participants who are between the ages of 60 and 63 can make catch-up contributions totaling up to $11,250 in tax year 2025.



<a href="https://www.copera.org/retirees/peraplus-401-k-457-plans" target="_blank" rel="noreferrer noopener">Learn more about PERAPlus 401(k)/457 Plans</a>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">HSA/FSA contribution limits</h2>



The amount of money workers can contribute to medical savings accounts also will increase in 2025.



<ul>
<li>HSA: Individuals enrolled in a high deductible health plan (HDHP) with a health savings account (HSA) will be able to contribute up to $4,300, and those with family coverage will be able to save a maximum of $8,550.</li>



<li>FSA: For workers who don’t have an HDHP with an HSA and instead use a flexible spending account (FSA), the maximum contribution for 2025 is $3,300. For plans that allow unused balances to roll over, the maximum amount that can be rolled over will increase to $660.</li>
</ul>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">2025 tax rates</h2>



Below are updated marginal tax rates for single taxpayers and married couples filing jointly. Visit <a href="https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025">the IRS website</a> for more tax tables and additional details.



Note that since these changes are for tax year 2025, they will generally apply to tax returns filed in 2026; <a href="https://www.copera.org/pera-on-the-issues/updated-tax-brackets-contribution-limits-other-changes-for-2024">2024 tax rates</a> will apply to returns filed in 2025.



<ul>
<li>37% for incomes over $626,350 ($751,600 for married couples filing jointly)</li>



<li>35% for incomes over $250,525 ($501,050 for married couples filing jointly)</li>



<li>32% for incomes over $197,300 ($394,600 for married couples filing jointly)</li>



<li>24% for incomes over $103,350 ($206,700 for married couples filing jointly)</li>



<li>22% for incomes over $48,475 ($96,950 for married couples filing jointly)</li>



<li>12% for incomes over $11,925 ($23,850 for married couples filing jointly)</li>



<li>10% for incomes $11,925 or less ($23,850 or less for married couples filing jointly)</li>
</ul>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Standard deduction</h2>



In addition to updated tax rates, the IRS announced increases to the standard deduction for tax year 2025:



<ul>
<li>Single taxpayers and married couples filing separately: $15,000 ($400 increase)</li>



<li>Heads of household: $22,500 ($600 increase)</li>



<li>Married couples filing jointly: $30,000 ($800 increase)</li>
</ul>







Taxpayers who are 65 or older can take an additional standard deduction, which is also adjusted for inflation. For tax year 2025, that amount is $2,000 for single filers and $1,600 for others.



Visit <a href="https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025" target="_blank" rel="noreferrer noopener">the IRS website</a> for more adjustments to tax provisions in 2025.



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">PERA benefits and taxes</h2>



Colorado PERA benefits are subject to federal income tax, as well as applicable state and local taxes. PERA retirees who would like to update their tax withholding can do so by&nbsp;<a href="https://www.copera.org/member-login-registration" target="_blank" rel="noreferrer noopener">logging in</a>&nbsp;to their secure member account or completing a paper Form W-4P.



Retirees and benefit recipients can expect to receive their 1099-R tax forms for tax year 2024 in January 2025.



Learn more at&nbsp;<a href="https://www.copera.org/taxes-on-benefits" target="_blank" rel="noreferrer noopener">copera.org/taxes-on-benefits</a>.

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