The year 2024 has seen a surge in interest around financial literacy and planning. This article highlights the most downloaded episodes of the Money Girl podcast, focusing on key topics that have resonated with listeners. From maximizing health savings accounts to navigating retirement plans, these episodes provide valuable insights for anyone looking to enhance their financial knowledge. Additionally, the podcast delves into successful investing strategies, methods to pay off credit card debt, and ways to earn more interest on savings. Each episode offers practical advice and actionable steps to improve personal finance management.
Navigating Health Savings Accounts (HSAs) as Couples
Understanding how to optimize an HSA can significantly impact your healthcare expenses and tax benefits. For couples, managing an HSA requires careful consideration of IRS rules and contribution limits. The podcast explains how married couples can maximize their HSA contributions while ensuring compliance with regulations. By leveraging the unique tax advantages of HSAs, couples can reduce taxable income, defer interest earnings, and enjoy tax-free withdrawals for eligible healthcare expenses.
To effectively manage an HSA as a couple, it's crucial to know the contribution limits set by the IRS. In 2024, the family limit is $8,300, increasing to $8,550 in 2025. If both spouses have individual HSA-eligible health plans, each can contribute up to $4,150 annually, rising to $4,300 in 2025. Additional catch-up contributions of $1,000 are available for those over 55. When one spouse has family coverage including dependents, the total contribution remains capped at the family limit. Couples can choose to allocate contributions between two separate HSAs or consolidate them into one account, as long as they do not exceed the annual limit. Domestic partners, however, face different rules, as they are treated as separate entities for HSA purposes, limiting their ability to share funds.
Evaluating the Pros and Cons of 401(k) Retirement Plans
Retirement planning is a critical aspect of financial well-being, and the 401(k) remains a popular choice for many. This episode explores the advantages and disadvantages of contributing to a 401(k), whether through an employer or as a self-employed individual. The discussion covers essential factors such as employer matching, contribution limits, investment options, and potential drawbacks like fees and penalties. Understanding these elements helps individuals make informed decisions about their retirement savings strategy.
One of the significant benefits of a 401(k) is the potential for employer matching, which essentially provides free money to boost your account. Annual contribution limits are generous, allowing up to $23,000 for employees under 50 and $30,500 for those over 50 in 2024. These limits will increase in 2025. Solo 401(k)s offer even higher contribution limits based on business income, reaching up to $69,000 or $76,500 for those over 50. However, 401(k)s also come with limitations. Investment options may be limited compared to IRAs, and there are often higher fees associated with administration. Early withdrawals before age 59.5 incur a 10% penalty, making it crucial to plan carefully. Despite these drawbacks, the advantages of a 401(k)—especially when matched by an employer—typically outweigh the downsides for most people.