Although it may not yet feel like fall outside, we are approaching the last quarter of 2016 and the time when employer benefits open enrollment occurs for the coming year. Before that benefits package hits your mail/email, here are a few things to consider in advance and discuss with your advisor. Are you covered by a High Deductible Health Plan (HDHP)? An HDHP is defined as having a deductible of at least $1,300 for Singles or $2,600 for families. If your health plan qualifies, you are eligible to contribute pre-tax money to a Health Savings Account (HSA), up to $3,400 for Singles in 2017, or $6,750 for families per year. By contributing pre-tax money, you reduce your current taxable income, but more importantly, when the money is withdrawn from the HSA for qualified medical expenses, it comes out tax-free. There is currently no other investment vehicle in which pre-tax money goes in and tax-free money comes out. The ideal situation is to maximize contributions to the HSA each year you are eligible (by having a high deductible health Read on! →
Cheryl Sherrard was recently quoted in an article entitled “Here’s Why It’s Taking so Long to Hit your Money Goals”, in Grow Magazine. She offered advice regarding employee deferrals to 401(k) plans, reminding readers that contributing only up to your employer match amount is not likely to be enough for your eventual retirement. This is an area where employees can make changes to save more quickly for the future. To see the article in it’s entirety, click here.