The IRS has raised contribution limits for Health Savings Accounts (HSAs) to $4,300 for single coverage and $8,550 for families in 2025. HSAs offer triple tax advantages: tax-deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses. To qualify, you must have a high-deductible health insurance plan.
Millions of taxpayers have over $1 billion in unclaimed 2020 tax refunds, but the deadline to file and claim them is May 17th. These refunds may include pandemic relief like stimulus checks. The IRS urges taxpayers to start the filing process as soon as possible, and provides tools like online account access to help them gather necessary information. Missing forms can be obtained online from banks or financial institutions. After the deadline, unclaimed refunds will expire, resulting in forfeited money.
New rules aim to make it easier for Americans to qualify for Supplemental Security Income (SSI) benefits and increase payments. Starting September 30th, changes will expand the definition of who qualifies for SSI and make it less likely that renting or receiving food assistance will affect eligibility or payments. These updates address outdated practices and reduce burdens for beneficiaries, improving access to benefits for millions of Americans who rely on them.
Adding your child as an authorized user on your credit cards can teach them financial responsibility. They can make purchases while you oversee their spending, and they can start building their credit history. Set clear limits and rules to prevent misuse, and be prepared to strike a balance between trust and monitoring.
Closing a bank account usually won't hurt your credit score. But watch out for negative balances! Unpaid debt sent to collections can damage your credit. Similarly, a bad mark on your ChexSystems report (used by banks) can block new accounts. To close safely, open a new account first, update automatic payments to avoid missed bills, and monitor your credit report for errors. Closing smartly protects your credit score.
Retiring soon? A Roth IRA conversion can lower your future tax bill. Convert your pretax IRA funds to a Roth IRA now, pay taxes upfront, and enjoy tax-free growth later. Ideal timing is during low-income years or before potential tax law changes in 2025. Be aware though, conversions can raise your Medicare Part B and D premiums due to higher MAGI. Consider smaller conversions to avoid jumping to a higher premium bracket. Talk to a financial advisor to see if a Roth IRA conversion is right for you.
