11 Money Moves to Make By Year-End
Take these steps soon to avoid a tax hit in 2015
(This article appeared previously on MarketWatch.com)
Take these steps now to avoid a tax hit in 2015:
5. Drain your flexible spending account (FSA). Yes, the U.S. Treasury Department and the Internal Revenue Service (IRS) this year changed the long-standing “use-it-or-lose-it” rule; employers can now offer a carry-over of up to $500 in unused health FSA funds to the following year or to continue a grace period option giving employees a 2½ month extension to spend remaining FSA funds, according to the Society for Human Resource Management. But employers aren't obligated to offer the carry-over or the grace period option. “Any optometrist, dentist, and the like can help get money spent before year’s end,” Galli joked.
Robert Powell is editor of Retirement Weekly, published by MarketWatch. Follow his tweets at RJPIII. Got questions about retirement? Get answers. Send Bob an email here.