Make the Most of Your Pretax Deductions

Don’t set it and forget it when it comes to pretax contributions. The money that comes out of your paycheck before taxes can work for you, but only if you manage it properly. Many employees mismanage or underutilize the pretax deduction programs that employers offer, says Joe Holberg, founder and CEO of Holberg Financial, so it’s important to learn as much as you can about your options. “The first major step is to know what is available to you. This is when you read the nitty-gritty paperwork, reach out to the HR person and figure out what portions of the pretax opportunities make sense for you.” Follow this checklist to get the most out of your pretax deductions. HSAs You can get a health savings account only if you have a high-deductible health plan — but once you open the account, it sticks with you even if you change jobs. …

CONTINUE READING