Nov 82 min read

Help Boost Year-End Benefits for Tax Savings

Maximize Your Benefits: End of Year Enrollment Essentials by Jason Daron, Financial Advisor

The annual employee deferral limit increased to $23,500, from $23,000 in 2024, for workplace plans, including 401(k)s, 403(b)s, governmental 457 plans and the federal government’s Thrift Savings Plan.

Essential end-of-year enrollment tips for maximizing benefits

As another year draws to a close, employees have a prime opportunity to manage and review employee benefits and make any changes for the upcoming year. People age 65 and over have the opportunity to evaluate and make changes to current Medicare coverage.

To ensure a smooth transition into 2025, start by confirming beneficiary information, contribution limits, tax withholding and enrollment in various other perks. Examples include flexible spending accounts (FSAs), health savings accounts (HSAs), and wellness programs.

Employee benefit enrollment changes

Review healthcare benefits, life insurance plans, retirement contributions and other voluntary benefits, confirming any contribution amounts. Review and update employee beneficiary information for health, retirement, and life insurance policies.

401(k)s, 403(b)s, governmental 457 plans and the federal government’s Thrift Savings Plan

On 11/1/24, the IRS published new guidance: the annual employee deferral limit increased to $23,500, from $23,000 in 2024 for workplace plans including 401(k)s, 403(b)s, governmental 457 plans; along with the federal government’s Thrift Savings Plan.

Catch-up contributions for those participants aged 50 and up will remain at $7,500, which means their total contribution for 2025 is capped at $31,000.

HSA & FSA

Source: October 16, 2020; Healthcare HSA vs. FSA: Understanding the Difference; Retrieved November 4, 2024 from https://www.alliancehealth.com/medical-finances/healthcare-hsa-vs-fsa/.

Health Savings Accounts (HSA)

In 2025, individuals can contribute up to $4,300 if they are covered by a high-deductible health plan just for themselves, or $8,550 if they have coverage for their families.

Flexible Spending Arrangements (FSA)

For the taxable years beginning in 2025, the dollar limitation for employee salary reductions for contributions to health flexible spending arrangements rises to $3,300, increasing from $3,200 in tax year 2024.

Thinking about Medicare enrollment?

Watch a recent presentation on Medicare basics.

Initial Enrollment Period: Age 65 and there are no penalties for signing up.
Special Enrollment Period: An employer group health plan after turning 65. There are no penalties for signing up or adding Part B during this time.
General Enrollment Period: This is from January 1 to March 31 each year. There are usually penalties for signing up during this time.
Open Enrollment Period: This is from October 15 to December 7 each year. This is when people with Medicare can change their health plans and prescription drug coverage for the following year.

Have questions on the Ohio PERS and STRS - Partial Lump Sum Option Payment (PLOP) for first responders, educators, and public employees?

Our team at Ascend Advisory values and thanks our community’s first responders, educators, and public employees for their service and dedication to our friends and families. They are the best of us, and often as public servants, put the needs of others ahead of their own. For their sacrifice, they deserve a retirement that makes them proud. However, many find the state retirement system to be confusing and hard to understand. We are here to help.