5 financial tips to finish the year strong
1. Revisit your 401k or 403b contributions.
Contributions to your retirement plan are due by the end of the year so it’s a good time to revisit what you’ve contributed so far and contribute to the $18,000 max if you have the means to take advantage of tax-deferred or potentially even tax-free savings. And if your employer offers a match, consider at least contributing to that amount – it’s often an overlooked benefit for employees. Also, keep in mind that while it’s important to save for the future, striking a balance that allows you to continue living comfortably today is just as important.
2. Over 50? You can catch-up.
The golden age has plenty of perks and when it comes to saving, once you turn 50 you’re able to contribute an additional $6,000 to your 401k or 403b. This can mean up to $24,000 of tax-deferred savings for the year. You can also contribute an additional $1,000 to your IRA. Now that’s worth celebrating.
3. Giving to a charity may make your money go further.
Making a charitable donation gives you an opportunity to make a difference for those less fortunate. At the same time, you could also reduce your tax burden for the year, so make your donation count.
4. Look closely at your Health Savings Account contributions and spending.
If you have a high-deductible health plan, contributing to a health savings account (HSA) allows you to take advantage of tax benefits that may increase the impact of your healthcare savings. Make sure to review your contributions and spending, and make adjustments where needed for 2018.
5. Review and name your beneficiary.
The end of the year is a great time to review and/or name your beneficiaries for your retirement savings plan and other savings accounts. This ensures that, should something happen to you, the savings you’ve worked to accumulate are passed along to the right people.
As you look at ways to maximize your finances for year end, take the opportunity to make adjustments for 2018. You can also set reminders for yourself throughout the year to revisit your selections to make sure they still match your situation and saving goals.
This information is provided by Voya for your education only. Neither Voya nor its representatives offer tax or legal advice. Please consult your tax or legal advisor before making a tax-related investment/insurance decision.