HSA Limit Increase | 529 Tax Benefits & The Power of Gratitude

HSA Limits Increase: For calendar year 2024, the Internal Revenue Service has said that the annual limitation on deductions for an individual with self-only coverage under a high-deductible health plan is $4,150, up from $3,850 for this year. That is up $200 from 2022, after climbing only $50 from 2021. For 2024, the annual limitation on deductions for an individual with family coverage under a high-deductible health plan is $8,300, up from $7,750 in 2023. This year’s figure was also up $450 from 2022. This is a valuable tool in your toolbelt of financial planning if it’s available to you. Check with your advisor today on how to make the most of it within your financial plan.

529 Tax Benefits: Tax benefits from 529 education savings plans depend on many factors, such as annual income and contribution levels. What state you live in also may mean additional tax benefits.

Money invested in 529 plans grow tax-free, and investors do not pay capital gain taxes if they spend that money on qualified education expenses. Each state then offers differing tax benefits. Nine states—including Pennsylvania—offer tax parity, which means investors can deduct their taxable income on contributions made to any plan in the United States.

The bottom line is that saving in a 529 plan offers benefits that may not be obvious. This is where we can help. If you want to open or further fund a 529 account, please contact us today. We would be happy to provide advice and input in your planning. As a reminder, we use My529 for our client’s 529 accounts, which are managed free of charge. Here are the current ratings on 529 plans:

Business Briefing

• Office Space: The return to the office has stalled after average city office occupancy rates reached 50 percent at the start of 2023 for the first time since the pandemic hit the United States three years earlier. Since then, office-usage rates haven’t moved much. According to software firm Scoop Technologies, about 58 percent of companies let employees work part of the week at home. Just 42 percent of companies require full-time in-person work, down from 49 percent three months ago. The situation is devastating real-estate values, lowering property-tax revenue, and hurting small businesses like bars and restaurants that depend on office workers. (The Wall Street Journal)
• Montana Bans TikTok: On Wednesday, May 17, Montana Governor Greg Gianforte signed legislation to ban Chinese-owned TikTok from operating in the state to protect residents. On Thursday, May 18, TikTok creators filed a lawsuit challenging the statewide ban of the popular app. The diverse group of users, with hundreds of thousands of followers, argued that Montana violated their free speech rights and threatened their livelihoods by imposing the nation’s first statewide ban. (Bloomberg)
• Pipeline Deal: Pipeline operator Oneok on Sunday agreed to buy Magellan Midstream Partners for about $14 billion in a deal that would create one of the biggest U.S. oil and natural gas pipeline operators. The price amounted to a 22 percent premium on smaller rival Magellan’s Friday stock price. Oneok will also take on $5 billion in Magellan debt in what will be the biggest U.S. energy deal this year if it closes as planned in the third quarter. (The Wall Street Journal)

The Power of Gratitude: Rebecka Peterson was named ‘Teacher of the Year’ for her daily commitment to write about one good thing that happened in her classroom on her blog, aptly titled One Good Thing. The Tulsa, Oklahoma, high school math teacher also challenges students to do the same in their hand-written journals. Peterson is described as someone who has the “ability to tap into students’ joy and form authentic bonds and has the dedication to make learning truly accessible.” The power of gratitude is that it benefits the one being grateful as much as the one receiving the gratitude. So what is one good thing that has happened to you today?