Marino on Money: April 21

I’d like to discuss a few more areas of your overall plan that could help save tax dollars right now. How? Here are three areas:

1) First, let’s take a look at your health insurance. If you’ve switched to a high deductible plan you may be eligible to put money away into an HSA, which is a tax free health savings account. These aren’t perfect for everyone. Check with your insurance advisor because an HSA might be able to save you some tax dollars.
2) Are you making IRA contributions? Even if you already have a 401k plan, some people can also deduct IRA contributions. If you can’t, you still might qualify for a Roth IRA. Sure, Roth IRA contributions won’t save you tax dollars today, but because it can grow tax free, it could really help out in retirement.
3) And finally, if you have Long Term Care Insurance, your premiums may be deductible. Check with your tax preparer and your insurance carrier. If you haven’t thought about how you’re going to pay for long term care, watch out. These expenses can quickly drain the savings you’ve worked hard to accumulate.

Remember, before you make any tax move, it’s always wise to check with your tax expert to make sure that these deductions and credits apply to you.