Before you ring in 2023 (woot-woot!) let’s take a moment to take a look at our Year End $$ Checklist!
Read below for a few things that may apply to you in wrapping up this year as a savvy, money-smart you!
Flex Spending Accounts (FSA):
If you have a FSA, lucky you! You work hard to secure a job with benefits.
Do not let your benefits go un-used! Not always true, but in this case, “if you don’t use it, you lose it.”
Some employers allow a portion of the FSA funds to rollover into the following year—check your plan for details!
FSA’s are typically used for tangible out of pocket medical expenses (think: glasses, RX sunglasses, and some drugstore products like SPF, personal hygiene products, etc.) but some plans can also be used to pay for Dependent Care as well including the costs of: pre-school, day care, after-school programs, babysitting, etc.
Again, check to see which type of benefits you have!
Tip: If you’re not sure what to spend your FSA funds on, there’s an entire website dedicated to FSA shopping!
https://fsastore.com/
Retirement Contributions for 2023:
Update your contributions for next year, however you make them.
The cap on the amount you can put away for Retirement is increasing:
•401(k) & 403(b) max contribution limits: $22,500/Annually, and age 50+ an additional $7500/Annually.
•Individual Retirement Accounts (IRA—including ROTHS) limits: $6500/Annually, and age 50+ an additional $1k/Annually.
•SIMPLE Account limits: $15,500/Annually, and age 50+ an additional $3500/Annually.
Tip: Shoot to put away 15% of your pre-tax annual income.
(Take your annual wage before taxes and multiple that by .15. Divide the answer by 12 and try to automatically put that amount into a retirement account every month before you even see the money hit your bank account.)
If you need to start with less, start with less! 10% is great. 5% is great.
Getting going on contributing is the most important part. Time is our biggest asset in growing our money.
If you have access to a company match, at least do the amount necessary to capture the FREE MONEY.
Charitable Contributions:
If you’ve been meaning to donate this year, get to it by year’s end!
In order to claim the tax credit for donations on your tax return next year, the donations must have been made in 2022 to a registered charitable organization or non-profit.
In general, you can deduct up to 60% of your Adjusted Gross Income (AGI) on your tax return for cash donations. (Not a Tax Professional.)
Need to note though: next year when you do your taxes you will be required to Itemize in order to get the tax credit for donations.
Previously, they let us write off $300 in cash donations (in order to stimulate donations during Covid) but those tax days are behind us (for now).
Meaning, you may not get as much of a tax break as you used to unless you donate an amount large enough to be worth Itemizing.
But you’ll still get that warm n fuzzy feeling of being a good person.
Here’s to a wiser, financially confident year ahead!
Unlocking Abundance 