That's a wrap for 2021
Updated: Dec 27, 2022
Reminders as we close out 2021:
The IRA limit for 2021 is $6,000 (Traditional and Roth combined). Where are you at? Even if you only have $10 more to contribute this year, do it! It's worth it. You do have until April to actually make this contribution, but we recommend getting it done now! No time like the present.
If you’ve contributed to a Health Savings Account (HSA), make sure you don’t surpass the yearly limit ($3,600 for self). Remember, this amount is prorated if you were only covered by a high-deductible plan for part of the year e.g. if you only had a high deductible plan for 9 months, you can only contribute a max of $2,700 ($3,600 x [9 mos/12mos] = $2,700).
If you have a Flexible Savings Account (FSA) via your low-deductible healthcare plan, make sure to spend any remaining tax-free funds in it. Cause it’s use it or lose it. If you don’t have any more planned medical spend this year, you can shop for FSA eligible items like sunscreen or wart removers or tons of other weird crap that’s on the FSA store.
The CARES Act, which was released to provide COVID relief, also will help you with your charitable contributions through 2021. According to the act, cash donations of up to $300 are still deductible when you file your taxes ($600 for married couples filing jointly). This is an above-the-line deduction, which means this deduction applies to you if you just take the standard deduction and don’t itemize.
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