Tax-Advantaged Accounts You Should Be Using

Tax-Advantaged Accounts You Should Be Using

Health Savings Account (HSA)

• Triple tax advantage
• 2025 limits: $4,300 individual / $8,550 family
• Must have an HDHP

401(k) and 403(b)

• Pre-tax contributions reduce taxable income
• 2025 limit: $23,500 ($31,000 if 50+)

Traditional IRA

• Deductible contributions if within income limits
• 2025 limit: $7,000 ($8,000 if 50+)

Roth IRA

• After-tax contributions; tax-free growth and withdrawals
• 2025 income limits: Phase-out $150,000–$165,000 (single)

529 Education Savings Plan

• Tax-free growth and withdrawals for education
• Can now be used for K-12 tuition (up to $10,000/year)
• Rollover to Roth IRA after 15 years (up to $35,000 lifetime, $7,000/year)

Dependent Care FSA

• Pre-tax funds for qualifying childcare: up to $5,000/year

Flexible Spending Account (FSA)

• Pre-tax medical expenses: up to $3,300/year (2025)
• Use-it-or-lose-it rule applies

ABLE Account

• Tax-free savings for individuals with disabilities
• Doesn't affect Medicaid/SSI eligibility (up to $100,000)

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Not using all of these? You may be leaving significant tax savings on the table.