The New 401(k) Super Catch-Up Rule: A Breakdown
Starting in 2025, the U.S. government is introducing a “super catch-up” rule for 401(k) plans aimed at helping those nearing retirement boost their savings. Here’s a breakdown of this significant change: What is it? The super catch-up rule, part of the SECURE Act 2.0, allows individuals aged 60 to 63 to contribute even more to […]
Navigating Dependent Care FSAs: Eligible Expenses and Smart Strategies
A Dependent Care Flexible Spending Account (FSA) is a handy financial tool that allows you to manage dependent care expenses using pre-tax dollars, effectively increasing your take-home pay. Dependent Care FSAs cover various forms of care, including childcare, before/after-school programs, summer day camps, and care for disabled dependents. However, there are restrictions. For instance, coverage […]
Mastering Your Flexible Spending Account (FSA): What You Can and Can’t Claim
Your Flexible Spending Account (FSA) covers various eligible expenses, such as prescriptions, dental and vision care, and even alternative therapies like acupuncture. However, there are also unallowable items, such as over-the-counter medicines without a prescription, beauty treatments, and health club memberships. Notably, the IRS tightly regulates usage, and misuse may result in tax penalties. So, […]
