One of the best places to accumulate assets for retirement is a health savings account, or HSA. But many Americans aren't getting the message. HSA account holders have accumulated over $51 billion in these special saving plans -- a 20.4 percent increase since last year. And the number of HSAs has grown over 11 percent, totaling 23.4 million accounts, according to the 2018 Midyear Devenir HSA Market Survey. But the study indicates that many people who do have HSAs aren't taking advantage of the account's long-term benefits. Through the first half of 2018, total HSA contributions were about $19.8 million, while withdrawals totaled over $13.7 million. That means most people use their HSA as a pass-through and are getting only the advantage of a tax-free way to pay for out-of-pocket medical costs. The study also indicates that over 80 percent of HSA assets aren't invested in any of a wide range of available investments. Invested HSA assets total only $10 billion, less than 20 … [Read more...] about Many savers missing out on the HSA’s benefits for retirement
Best rollover ira options
Sometimes money is like technology. Getting stuff done — whether it's updating an operating system or moving a bank account — often takes longer than it should. There are some money chores, though, that can be done a lot faster than you may think. The following financial tasks, which could save you a lot of cash and stress in the future, each can be dispatched in 15 minutes or less once you've decided on a plan and have your information at hand. ADJUST YOUR WITHHOLDING Tax reform means different brackets, the elimination of many deductions and the real possibility you're withholding too much or too little. Avoid unpleasant surprises next year by checking your withholding now. You'll need last year's tax return plus your latest pay stubs. Plug the necessary numbers into the IRS site's withholding calculator . The results will include instructions on exactly how to tweak your withholding, with a convenient link to a printable W-4 form. You can drop that off at your human … [Read more...] about Got an hour? Chalk up 4 quick financial wins
By Anna-Louise Jackson / NerdWallet Some interns spend their days fetching coffee. Others get their hands on something even hotter: their first 401(k). Not so long ago, scoring an internship that actually paid might have seemed novel. But recent studies by the National Association of Colleges and Employers have found that among graduating college seniors, paid internships are increasingly the norm, and that at least half of employers report offering 401(k) plans to their interns. If you scored an internship that comes with a 401(k), here are three things you need to know. It's not too early to think about retirement During an internship, planning for retirement probably isn't one of your top priorities -- and understandably so. That said, it's never too early to begin thinking about your future. A 401(k) is a savings and investing plan offered by companies to their employees. It offers tax breaks that encourage saving and serves as the primary nest egg for many American retirees. … [Read more...] about How interns with a 401(k) can make it pay
WASHINGTON — A donor-advised fund (DAF) is a powerful and popular tool to simplify the management of your charitable giving. According to the 2017 Donor Advised Fund report from the National Philanthropic Trust, donor-advised funds reached a record $23 billion in contributions in 2016. Donor-advised funds offer many of the benefits of a private foundation without the headaches. Some of the advantages are that it allows you, as the donor, to receive an immediate tax deduction for the full amount of your charitable donation, invest the principal free of taxes and distribute funds to charities that you and your successors care about most over time. Establishing an account in a DAF can be arranged at most major brokerage firms, as well as through community foundations and single-issue charity sponsors. The initial amount needed to open a DAF account and the required future minimum additions and charity gifts varies based on the specific sponsor. Other than your donation into the … [Read more...] about Are donor advised funds right for your charitable giving?
WASHINGTON — There are many financial decisions that a widow has to face in the early days after the loss of a spouse. One of them is deciding how to handle the assets that come to you from traditional individual retirement accounts (IRAs) that were owned by your spouse. The rules can be complicated, and making an uninformed decision may result in having less of the money that was left to you to support yourself and your family. While we suggest that you consult with both tax and financial advisers to help you make the best decision, here are a few things to know. There are four main options a widowed spouse can take when it comes to inheriting traditional IRA assets as a direct beneficiary (i.e., not through a trust). Those options are: Roll over assets into an IRA in your name Roll over the assets into an inherited IRA account Take the assets out for spending Convert the assets to a Roth IRA A fifth option, disclaiming all or part of the assets, may apply if you think … [Read more...] about 5 facts widows need to know about inheriting traditional IRAs