January 17, 2022
Best Money Moves for December 2021 | Smart Change: Personal Finance | madison.com – Madison.com

Best Money Moves for December 2021 | Smart Change: Personal Finance | madison.com – Madison.com

In addition to the 529 plan’s federal tax benefits, a majority of states also offer their own tax benefits. A cherry on top, if you will. Folks in 29 states and Washington, D.C. who contribute to 529 plans are eligible for state income-tax deductions or credits so long as they contribute by their state’s deadline.

A report from Saving for College shows that all states except the following six have a Dec. 31, 2021, contribution deadline:

  • Georgia (April 15, 2022)
  • Iowa (April 30, 2022)
  • Mississippi (April 15, 2022)
  • Oklahoma (April 15, 2022)
  • South Carolina (April 15, 2022)
  • Wisconsin (April 15, 2022)

6. Use up your FSA money (or say bye bye)

A Flexible Savings Account (FSA) is a health-care savings account offered by some employers. It allows account holders to tuck away up to $2,750 per year, tax-free. The catch is that FSAs have a “use-it-or-lose-it” stipulation. That means that if you don’t use up your money by the deadline, which in most cases is Dec. 31, you can kiss that money goodbye.

Source: https://madison.com/business/investment/personal-finance/best-money-moves-for-december-2021/article_0a8a4ecd-8a64-506e-82fe-686a37d6948c.html

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