Health Savings Accounts (HSAs) allow taxpayers with high-deductible health insurance plans to set aside tax-deductible funds to pay for unreimbursed medical expenses. For 2005, the amount individuals can put into their HSAs increases to $2,650, and the amount for family coverage increases to $5,250. Those who are 55 or older can put an additional $600 into an HSA this year..
Though the amount that taxpayers could put into other retirement plans has increased annually for the last several years, the annual IRA contribution limit remained at $3,000 ($3,500 for those 50 or older). That changes this year. In 2005 you can put up to $4,000 into an IRA (traditional, spousal, or Roth) if you’re under age 50 and up to $4,500 if you’re 50 or older.
Another IRA reminder: You have until April 15 of this year to contribute to an IRA for 2004. If you didn’t reach the 2004 contribution limit by December 31, 2004, and you make IRA contributions on or before April 15, 2005, designate them as being for 2004 (not 2005) until you reach your 2004 limit. Then you can deduct these contributions on your 2004 tax return for a quicker tax benefit.
The IRS has good news for more than four million small businesses. Under regulations recently issued by the IRS, employers will be required to make quarterly deposits for federal unemployment taxes (FUTA) only if the accumulated tax exceeds $500. The deposit threshold prior to 2005 was $100.
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