Pumpkins, Turkeys, and IRS Contribution limits!

As the year wraps up, it’s a great time to consider how to maximize your benefits while keeping IRS contribution limits in mind. Here are some strategies:

401(k) Contributions:

1. Max Out Contributions: If you haven’t reached the annual limit, consider increasing your contributions before the year ends.
2. Employer Match: Make sure you’re contributing enough to take full advantage of any employer match, as this is essentially free money.

Health Savings Accounts (HSAs):

1. Fully Fund Your HSA: If you have an HSA-eligible health plan, contribute up to the limit to reduce your taxable income.
2. Use Funds Wisely: Remember that HSA funds can be invested for growth and can be used for qualified medical expenses tax-free.

As of 2024, the contribution limits for 401(k) plans and Health Savings Accounts (HSAs) are as follows:

401(k) Contribution Limits:

• Employee Contribution: Up to $23,000 per year.
• Catch-Up Contribution (age 50 and older): An additional $7,500, bringing the total to $30,500.
• Log into manage your 401k right here:  https://participant.empower-retirement.com/participant/#/login

HSA Contribution Limits:

• Individual Coverage: Up to $4,150 per year.
• Family Coverage: Up to $8,300 per year.
• Catch-Up Contribution (age 55 and older): An additional $1,000.
• You can manage your HSA account right here: https://www.healthequity.com/

Always check the IRS website or consult a tax professional for the most current information.

Final Thoughts:

Please consult a Professional: It can be helpful to consult a financial advisor or tax professional to tailor these strategies to your specific situation.