My weekends are spent reading through the tax code (so you don’t have to).
Everything we’re sharing with our clients about their finances.
My clients pay me to do two things:
To keep them from making bad financial decisions.
To be informed of the things that will help them make good ones.
Here is what I am putting on their radar:
Getting “caught up” in 2025.
Starting next year if you’re between ages 60 and 63 you can put an additional $10K in your 401k above the current IRS limit.
$23K (current IRS limit) + $10K (the “new” catch up) = $33k.
This is especially impactful if you make less than $145K — if you’re below this threshold you can “write off” the extra $10K from your taxes.
Pet lives matter.
Currently there is bipartisan support for a bill that will allow you to use up to $1000 in your HSA/FSA on veterinary care and pet insurance (tax and penalty free).
This is especially important if you’re trying to find ways to clear your FSA balance this year.
No HDHP? No worry.
There is bipartisan support for another bill that will allow you to save money into an “HSA-like” account without needing to be in a High Deductible Health Plan.
Contributions to this account would NOT be tax deductible but they could be matched by your employer (up to 50%).
The government matching your 401k??
Today, you get a tax credit (up to $2000) for contributions made to your 401k (if you make less than $38K and are single or $76k and married).
In 2027 the government will do away with that tax credit and contribute the funds directly to your retirement account.
You’ll pay a little extra in taxes (if you’re below the $38k/76k threshold), but the government match plus your employer match (if you have one) should help bolster your retirement savings.
The electric slide.
There is a $7500 tax credit for electric vehicles that is good through 2032 — nice.
There is also up to a $100,000 tax credit for the installation of electric vehicle chargers (if you’re installing them for your business) — very nice.
Cheers