Double-check your contributions to tax-advantaged accounts this time of year

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willthrill81
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Double-check your contributions to tax-advantaged accounts this time of year

Post by willthrill81 » Wed Nov 07, 2018 3:43 pm

This is a friendly reminder that it may be a good time of year to double-check your contributions to tax-advantaged accounts to make sure you will contribute as much to them as you desire.

For instance, I need to adjust my HSA contributions because the contribution limit changed after I last adjusted them.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

mervinj7
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Re: Double-check your contributions to tax-advantaged accounts this time of year

Post by mervinj7 » Wed Nov 07, 2018 4:54 pm

willthrill81 wrote:
Wed Nov 07, 2018 3:43 pm
This is a friendly reminder that it may be a good time of year to double-check your contributions to tax-advantaged accounts to make sure you will contribute as much to them as you desire.

For instance, I need to adjust my HSA contributions because the contribution limit changed after I last adjusted them.
I didn't think you could change HSA contributions after the open enrollment period is over. Or do you mean you are adjusting 2019's HSA amounts?

runner3081
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Re: Double-check your contributions to tax-advantaged accounts this time of year

Post by runner3081 » Wed Nov 07, 2018 5:18 pm

willthrill81 wrote:
Wed Nov 07, 2018 3:43 pm
This is a friendly reminder that it may be a good time of year to double-check your contributions to tax-advantaged accounts to make sure you will contribute as much to them as you desire.

For instance, I need to adjust my HSA contributions because the contribution limit changed after I last adjusted them.
I don't believe that is not allowed unless you have a qualifying mid-year change in status. (through payroll deduction contributions)

JoeJohnson
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Re: Double-check your contributions to tax-advantaged accounts this time of year

Post by JoeJohnson » Wed Nov 07, 2018 5:40 pm

mervinj7 wrote:
Wed Nov 07, 2018 4:54 pm
willthrill81 wrote:
Wed Nov 07, 2018 3:43 pm
This is a friendly reminder that it may be a good time of year to double-check your contributions to tax-advantaged accounts to make sure you will contribute as much to them as you desire.

For instance, I need to adjust my HSA contributions because the contribution limit changed after I last adjusted them.
I didn't think you could change HSA contributions after the open enrollment period is over. Or do you mean you are adjusting 2019's HSA amounts?

I am allowed to change HSA contribution at any time. Perhaps you're thinking of FSA.

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willthrill81
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Re: Double-check your contributions to tax-advantaged accounts this time of year

Post by willthrill81 » Wed Nov 07, 2018 5:42 pm

JoeJohnson wrote:
Wed Nov 07, 2018 5:40 pm
mervinj7 wrote:
Wed Nov 07, 2018 4:54 pm
willthrill81 wrote:
Wed Nov 07, 2018 3:43 pm
This is a friendly reminder that it may be a good time of year to double-check your contributions to tax-advantaged accounts to make sure you will contribute as much to them as you desire.

For instance, I need to adjust my HSA contributions because the contribution limit changed after I last adjusted them.
I didn't think you could change HSA contributions after the open enrollment period is over. Or do you mean you are adjusting 2019's HSA amounts?

I am allowed to change HSA contribution at any time. Perhaps you're thinking of FSA.
Yes, that's right. You can change HSA contributions any time. You can't change FSA contributions unless you've had a 'qualifying event'.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

mervinj7
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Re: Double-check your contributions to tax-advantaged accounts this time of year

Post by mervinj7 » Wed Nov 07, 2018 5:50 pm

willthrill81 wrote:
Wed Nov 07, 2018 5:42 pm
JoeJohnson wrote:
Wed Nov 07, 2018 5:40 pm
I am allowed to change HSA contribution at any time. Perhaps you're thinking of FSA.
Yes, that's right. You can change HSA contributions any time. You can't change FSA contributions unless you've had a 'qualifying event'.
Yes, I think you two are right. I can change my HSA contributions anytime but I can't change them online as easily as I can with my 401k contribution level. Apparently, I have to call the Benefits Center to do it. :oops:

SRenaeP
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Re: Double-check your contributions to tax-advantaged accounts this time of year

Post by SRenaeP » Fri Nov 09, 2018 9:24 am

Thanks for the reminder. Double-checking prompted me to stop both my and DH's HSA contributions. Unfortunately the change won't take effect until the 1st of the month so we will still have excess contributions. However, I will request the excess funds be returned before the end of the year.

Faith20879
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Re: Double-check your contributions to tax-advantaged accounts this time of year

Post by Faith20879 » Fri Nov 09, 2018 9:41 am

Your reminder reminded me of something else too. Thanks you!

After double-checking, it seems, with the state/local tax deduction and personal exemption going away, we will owe more taxes this year. Hurried in to increase our Fed withholding. Hopefully with only three pay periods left, my calculation is close enough.

Tamales
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Re: Double-check your contributions to tax-advantaged accounts this time of year

Post by Tamales » Fri Nov 09, 2018 10:57 am

Faith20879 wrote:
Fri Nov 09, 2018 9:41 am
Your reminder reminded me of something else too. Thanks you!

After double-checking, it seems, with the state/local tax deduction and personal exemption going away, we will owe more taxes this year. Hurried in to increase our Fed withholding. Hopefully with only three pay periods left, my calculation is close enough.
You can increase federal withholding by a fixed dollar amount in addition to withholding due to W4 allowances. That makes it easier to fine tune, although there's some ambiguity on which paycheck it will take effect.

Bortky
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Re: Double-check your contributions to tax-advantaged accounts this time of year

Post by Bortky » Fri Nov 09, 2018 11:06 am

It's looking like I will be short in my HSA. Can I just make a lump sum deposit from my bank near the end of the year to reach the max and then deduct the max from my taxable income?

terran
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Re: Double-check your contributions to tax-advantaged accounts this time of year

Post by terran » Fri Nov 09, 2018 11:46 am

Bortky wrote:
Fri Nov 09, 2018 11:06 am
It's looking like I will be short in my HSA. Can I just make a lump sum deposit from my bank near the end of the year to reach the max and then deduct the max from my taxable income?
Yes, you can do that. In fact, you can contribute anytime up until the tax filing deadline (same as IRAs) so you can actually contribute for this year next year. The (possible) disadvantage to this is that contributions withheld from your paycheck may not be subject to FICA tax (if your employer has it set up to allow this) while contributions you make directly will only be income tax deductible.

Faith20879
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Re: Double-check your contributions to tax-advantaged accounts this time of year

Post by Faith20879 » Fri Nov 09, 2018 1:40 pm

Tamales wrote:
Fri Nov 09, 2018 10:57 am
You can increase federal withholding by a fixed dollar amount ...
Yep, did exactly that.

seity
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Re: Double-check your contributions to tax-advantaged accounts this time of year

Post by seity » Fri Nov 09, 2018 3:18 pm

I just had to do this because I realized that I'll be getting a 27th pay check this year and I had done all my 401k and Roth withholdings based on a 26 pay check year. I was suddenly 1 paycheck overpaid for my carefully balanced taxes, so now my last 3 paychecks are going to be extra small (just in time for xmas).

sport
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Re: Double-check your contributions to tax-advantaged accounts this time of year

Post by sport » Fri Nov 09, 2018 3:26 pm

Similarly, if you are in RMD territory, you need to make sure your RMD has been satisfied, or will be, before the end of the year.

Nate79
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Re: Double-check your contributions to tax-advantaged accounts this time of year

Post by Nate79 » Fri Nov 09, 2018 9:56 pm

Thanks for the reminder. It made me realize that I was going to be about $100 short of maxing my 401k so I bumped the percentage up.

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willthrill81
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Re: Double-check your contributions to tax-advantaged accounts this time of year

Post by willthrill81 » Fri Nov 09, 2018 11:31 pm

Faith20879 wrote:
Fri Nov 09, 2018 1:40 pm
Tamales wrote:
Fri Nov 09, 2018 10:57 am
You can increase federal withholding by a fixed dollar amount ...
Yep, did exactly that.
To my knowledge, though, if you make an HSA deposit yourself, you still have to pay FICA on the contribution, whereas you do not if the contribution is made through your employer.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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