FITNESS INSPIRATION – TOBY

When it comes to saving for long-term goals like college or retirement, it’s important to consider accounts that offer tax benefits. These accounts can help you save money on taxes and allow your money to grow over time through investments.

Some examples of accounts with tax benefits include a 529 education plan, Roth IRA, and health savings account. A 529 education plan is a tax-advantaged investment account designed to help families save for college. Contributions to a 529 plan are made with after-tax dollars, but earnings grow tax-free and withdrawals for qualified education expenses are tax-free as well.

A Roth IRA is another account that offers tax benefits. Contributions to a Roth IRA are made with after-tax dollars, but earnings grow tax-free and qualified withdrawals are tax-free as well. This makes a Roth IRA a great option for long-term retirement savings.

Finally, a health savings account (HSA) is a tax-advantaged account designed to help individuals save for healthcare expenses. Contributions to an HSA are made with pre-tax dollars, and earnings grow tax-free. Withdrawals for qualified healthcare expenses are also tax-free.

Before opening any new accounts, it’s important to consult with your tax advisor to ensure that you are making the best decision for your individual financial situation. However, in general, accounts with tax benefits can be a great way to save for long-term goals and achieve greater financial security over time.