Take Your Required Minimum Distribution (RMD)
For any tax-deferred retirement account (such as a Traditional IRA, 401(k), or 403(b)), the IRS requires account holders to take an annual distribution once they reach age 73. The formula for determining the amount of the distribution is based on the account holder’s age and account balance at the end of the previous year. Since…
How to Utilize FSA/HSA Funds
Last month on Money Mindset, we discussed implementing an FSA or HSA plan if your insurance plan allows it. Just as a reminder, these accounts allow for tax-deductible contributions, and the funds can be taken out tax-free if they are used for qualified medical expenses. For an FSA (flexible spending account) funds are lost if…
How To Be A Smart Holiday Shopper.
One of the most important facets of managing year-end finances is to be a smart holiday shopper. First and foremost, make sure to set some parameters and operate from a spending plan. Make sure to track your purchases along the way so that you stay within the budget you set for your household. Finally, make…
What other benefits should I sign up for?
In addition to employer-sponsored retirement plans and group health insurance, life insurance and long-term disability insurance (LTDI) are typically needed by most employees. Life Insurance As a general rule-of-thumb, an individual needs life insurance if another person is financially dependent on them. There are many different types of life insurance, but most employer plans offer…
Should I contribute Roth or Pre-tax?
When it comes to retirement accounts, there are two basic types – Pre-tax (also known as Traditional) and Roth. It can be confusing and overwhelming to select the right choice. To start, let’s simply break down the difference between the two. Pre-tax (Traditional) Pre-tax retirement accounts allow participants to contribute to the accounts on a…
How much do I contribute to my 401(k)?
Most employers now offer some type of employer-sponsored retirement plan. There are many different types, including 401(k)s, 403(b)s, Simple IRAs, SEP IRAs, and 457 plans. For this blog, we’ll simply use the term “401(k).” As a general rule-of-thumb, it’s a best practice to set a goal to save 15% of your gross income for retirement. …
What do I do with health insurance?
When it comes to group health insurance options, it can be difficult to choose from the myriad of options. Typically, the options can be broken down into two separate categories: high-deductible plans and low-deductible plans. High-deductible plans have a lower monthly premium but a higher deductible, just as the name suggests. One major benefit to…
Educational Tax Credits
Educational tax credits are a valuable tool within the realm of tax policy that seeks to encourage and support higher education pursuits. These credits are designed to alleviate the financial burden of education expenses by allowing eligible taxpayers to claim a credit against their income tax liability. Typically, there are two main types of educational…
Funding: Childcare Expenses
The Dependent Care Tax Credit and the Dependent Care Flexible Spending Account (FSA) are both financial tools designed to assist individuals and families with the costs of child or dependent care. These resources aim to alleviate some of the financial burden associated with ensuring the well-being of dependents while caregivers work or pursue other responsibilities.…
Funding for Higher Education – 529 Plans
As the cost of education continues to rise (and often outpace inflation), many parents and guardians have taken an interest in proactively saving for their children’s education. The most common vehicle used to save for education is called the ‘529 Plan.’ These accounts have been around for several years, and they are popular due to…