Tax season is in full swing and as the April 15 filing deadline approaches, employees are looking for ways to maximize their savings. One often-overlooked strategy? Taking full advantage of pre-tax benefits. These employer-sponsored programs can help you reduce your taxable income and keep more of your hard-earned money. What are Pre-Tax Benefits? Pre-tax...
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With the 2024 U.S. election potentially leading to significant shifts in employment laws and employee benefits, it’s crucial for employers to stay ahead of changes to maintain compliance. New regulations could affect everything from healthcare policies and labor laws to tax laws, all of which play a key role in benefits administration. Employers who proactively...
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Tax season is in full swing and as the April 15 filing deadline approaches, employees are looking for ways to maximize their savings. One often-overlooked strategy? Taking full advantage of pre-tax benefits. These employer-sponsored programs can help you reduce your taxable income and keep more of your hard-earned money.
What are Pre-Tax Benefits?
Pre-tax benefits are employer-sponsored programs that allow employees to set aside a portion of their income before taxes are deducted. By lowering taxable income, you can reduce the amount of federal, state and FICA taxes you owe.
Some of the most common pre-tax benefits include:
Each of these benefits provide unique tax advantages that can make a big difference at tax time.
Last-Minute Tax Savings Before April 15
Even though many pre-tax benefits are elected during open enrollment, there are still last-minute tax savings opportunities before the deadline:
Maximize HSA Contributions
If you have an HSA, you can make contributions up until the tax filing deadline (April 15, 2025) for the 2024 tax year.
Contributing more before the deadline can help you lower your taxable income for 2024 while building tax-free savings for future medical expenses.
Contribute to a Traditional IRA
Even if you’re enrolled in a workplace retirement plan, you may still be eligible to contribute to a Traditional IRA before April 15. These contributions may be tax-deductible, depending on income and filing status.
Review and Adjust 401(k) Contributions for 2025
While it’s too late to contribute to a 401(k) for the previous tax year, you can increase contributions now to maximize savings for 2025.
Pre-tax benefits aren’t just a way to lower taxes—they’re a powerful financial tool that helps you save for healthcare, retirement and everyday expenses.
The information in this blog post is for educational purposes only. It is not investment, legal or tax advice. For legal or tax advice, you should consult your own counsel. To stay up to date on benefits trends and insights, subscribe to our blog.
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