Another year is coming to an end. Take advantage of the upcoming months to review the financial opportunities you can benefit from that the year-end provides. Let's briefly break down a few of them.
Maximize Your Tax-Advantaged Accounts
Are you still working and contributing to a Health Savings Account? Top it off by making an additional contribution over your monthly payroll deduction. (Folks over age 55 can make an extra $1000 contribution.)
Do you have a few extra bucks in your checking or savings account? Have you maxed your contribution to an IRA or a Roth IRA? What about topping off your 401k? These contribution strategies can lead to savings on your 2024 personal taxes. Some will save you taxes forever!
Earned too much and prohibited from contributing to a Roth IRA? Consider a tax-deferred savings (a fixed annuity) plan or a TAXABLE IRA instead, then rolling it to a regular IRA the following year.
Many tips and creative strategies are available to you that most advisors either don't know about, have no experience with, or are not licensed to provide. Did you know that contributions to a permanent life insurance policy can be borrowed from the policy and not paid back? What if the cash accumulated grows tax-deferred as well?
Don't Forget Healthcare and Medicare Benefits
Many states allow the deduction of health care costs from your state tax return. Even if you have an older, no copay, no deductible Medicare supplement, you may still have expenses incurred at the pharmacy or for care not covered by Medicare, like care at home, medical transportation, duplicate medical equipment, glasses, or dental. Ensure you keep the receipts so your tax preparer knows what to do based on where you live.
Many folks on Medicare forget or don't know how to use the benefits they may have in their current plan. They could save on gym memberships, dental, vision, and hearing discounts to thousands of REAL dollars provided by their Medicare Advantage plans for those benefits.
We are full of beneficial financial planning information. Our entire team focuses on helping you stay healthy and keep your money where it belongs. In your pocket. (Or mattress). Or even managed by our financial team. (Shameless plug)
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By David Schaeffer
Founder of American Retirement Advisors, David has spent decades helping retirees and pre-retirees build secure financial futures. His straightforward approach to retirement planning has guided hundreds of families toward confident, well-prepared retirements.
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Easy Eddie's Take
David's absolutely right about the power of year-end planning. Let's take a look at the current numbers for 2026 together. For Health Savings Account contributions, if you're under 55, you can contribute up to $4,300 for individual coverage or $8,550 for family coverage. Those catch-up contributions David mentioned are a real advantage once you hit 55.
Here's something most people are surprised to learn: the 2026 contribution limits for traditional and Roth IRAs are $7,500 annually, with an extra $1,000 catch-up if you're 50 or older. For 401(k) plans, you can contribute up to $23,500, with catch-up contributions allowing those 50 and over to add another $7,500. A lot of people ask me, "What's the difference between contributing to a traditional versus Roth IRA?" Think of it this way: traditional IRA contributions might lower your taxes now, while Roth contributions grow tax-free forever.
The Medicare benefits David mentions are huge. During Medicare Open Enrollment (October 15 through December 7), you can switch from Original Medicare to a Medicare Advantage plan or vice versa. Many Medicare Advantage plans through companies like Humana, UnitedHealthcare, and Anthem offer those gym memberships, dental, and vision benefits he's talking about. Once you see how these benefits work together with smart tax planning, it's actually pretty simple to make your money work harder for you.