Latest news with #Galli
Business Mayor
03-05-2025
- Business
- Business Mayor
IRS unveils new HSA limits for 2026. Here's what investors need to know
Maskot | Maskot | Getty Images The IRS on Thursday unveiled 2026 contribution limits for health savings accounts, or HSAs, which offer triple-tax benefits for medical expenses. Starting in 2026, the new HSA contribution limit will be $4,400 for self-only health coverage, the IRS announced Thursday. That's up from $4,300 in 2025, based on inflation adjustments. Meanwhile, the new limit for savers with family coverage will jump to $8,750, up from $8,550 in 2025, according to the update. More from Personal Finance: There's a new 'super funding' limit for some 401(k) savers in 2025 This 401(k) feature can kick-start tax-free retirement savings Gold ETF investors may be surprised by their tax bill on profits To make HSA contributions in 2026, you must have an eligible high-deductible health insurance plan. For 2026, the IRS defines a high deductible as at least $1,700 for self-only coverage or $3,400 for family plans. Plus, the plan's cap on yearly out-of-pocket expenses — deductibles, co-payments and other amounts — can't exceed $8,500 for individual plans or $17,000 for family coverage. Investors have until the tax deadline to make HSA contributions for the previous year. That means the last chance for 2026 deposits is April 2027. HSAs have triple-tax benefits There's typically an upfront deduction for contributions, your balance grows tax-free and you can withdraw the money any time tax-free for qualified medical expenses. Unlike flexible spending accounts, or FSAs, investors can roll HSA balances over from year to year. The account is also portable between jobs, meaning you can keep the money when leaving an employer. That makes your HSA 'very powerful' for future retirement savings, Galli said. Healthcare expenses in retirement can be significant. A single 65-year-old retiring in 2024 could expect to spend an average of $165,000 on medical expenses through their golden years, according to Fidelity data. This doesn't include the cost of long-term care. Most HSAs used for current expenses In 2024, two-thirds of companies offered investment options for HSA contributions, according to a survey released in November by the Plan Sponsor Council of America, which polled more than 500 employers in the summer of 2024. But only 18% of participants were investing their HSA balance, down slightly from the previous year, the survey found. 'Ultimately, most participants still are using that HSA for current health-care expenses,' Hattie Greenan, director of research and communications for the Plan Sponsor Council of America, previously told CNBC. READ SOURCE
CNBC
02-05-2025
- Business
- CNBC
IRS unveils new HSA limits for 2026. Here's what investors need to know
The IRS on Thursday unveiled 2026 contribution limits for health savings accounts, or HSAs, which offer triple-tax benefits for medical expenses. Starting in 2026, the new HSA contribution limit will be $4,400 for self-only health coverage, the IRS announced Thursday. That's up from $4,300 in 2025, based on inflation adjustments. Meanwhile, the new limit for savers with family coverage will jump to $8,750, up from $8,550 in 2025, according to the update. More from Personal Finance:There's a new 'super funding' limit for some 401(k) savers in 2025This 401(k) feature can kick-start tax-free retirement savingsGold ETF investors may be surprised by their tax bill on profits To make HSA contributions in 2026, you must have an eligible high-deductible health insurance plan. For 2026, the IRS defines a high deductible as at least $1,700 for self-only coverage or $3,400 for family plans. Plus, the plan's cap on yearly out-of-pocket expenses — deductibles, co-payments and other amounts — can't exceed $8,500 for individual plans or $17,000 for family coverage. Investors have until the tax deadline to make HSA contributions for the previous year. That means the last chance for 2026 deposits is April 2027. If you're eligible to make HSA contributions, financial advisors recommend investing the balance for the long-term rather than spending the funds on current-year medical expenses, cash flow permitting. The reason: "Your health savings account has three tax benefits," said certified financial planner Dan Galli, owner of Daniel J. Galli & Associates in Norwell, Massachusetts. There's typically an upfront deduction for contributions, your balance grows tax-free and you can withdraw the money any time tax-free for qualified medical expenses. Unlike flexible spending accounts, or FSAs, investors can roll HSA balances over from year to year. The account is also portable between jobs, meaning you can keep the money when leaving an employer. That makes your HSA "very powerful" for future retirement savings, Galli said. Healthcare expenses in retirement can be significant. A single 65-year-old retiring in 2024 could expect to spend an average of $165,000 on medical expenses through their golden years, according to Fidelity data. This doesn't include the cost of long-term care. In 2024, two-thirds of companies offered investment options for HSA contributions, according to a survey released in November by the Plan Sponsor Council of America, which polled more than 500 employers in the summer of 2024. But only 18% of participants were investing their HSA balance, down slightly from the previous year, the survey found. "Ultimately, most participants still are using that HSA for current health-care expenses," Hattie Greenan, director of research and communications for the Plan Sponsor Council of America, previously told CNBC.
CNBC
01-05-2025
- Business
- CNBC
This lesser-known 401(k) feature can kickstart your tax-free retirement savings
If you're eager to increase your retirement savings, a lesser-known 401(k) feature could significantly boost your nest egg, financial advisors say. For 2025, you can defer up to $23,500 into your 401(k), plus an extra $7,500 in "catch-up contributions" if you're age 50 and older. That catch-up contribution jumps to $11,250 for investors age 60 to 63. Some plans offer after-tax 401(k) contributions on top of those caps. For 2025, the max 401(k) limit is $70,000, which includes employee deferrals, after-tax contributions, company matches, profit sharing and other deposits. If you can afford to do this, "it's an amazing outcome," said certified financial planner Dan Galli, owner of Daniel J. Galli & Associates in Norwell, Massachusetts. Here's a look at other stories impacting the financial advisor business. "Sometimes, people don't believe it's real," he said, because you can automatically contribute and then convert the funds to "turn it into tax-free income." However, many plans still don't offer the feature. In 2023, only 22% of employer plans offered after-tax 401(k) contributions, according to the latest data from Vanguard's How America Saves report. It's most common in larger plans. Even when it's available, employee participation remains low. Only 9% of investors with access leveraged the feature in 2023, the same Vanguard report found. That's down slightly from 10% in 2022. After-tax and Roth contributions both begin with after-tax 401(k) deposits. But there's a key difference: The taxes on future growth. Roth money grows tax-free, which means future withdrawals aren't subject to taxes. To compare, after-tax deposits grow tax-deferred, meaning your returns incur regular income taxes when withdrawn. That's why it's important to convert after-tax funds to Roth periodically, experts say. "The longer you leave those after-tax dollars in there, the more tax liability there will be," Galli said. But the conversion process is "unique to each plan." Often, you'll need to request the transfer, which could be limited to monthly or quarterly transactions, whereas the best plans convert to Roth automatically, he said. Before making after-tax 401(k) contributions, you should focus on maxing out regular pre-tax or Roth 401(k) deferrals to capture your employer match, said CFP Ashton Lawrence at Mariner Wealth Advisors in Greenville, South Carolina. After that, cash flow permitting, you could "start filling up the after-tax bucket," depending on your goals, he said. "In my opinion, every dollar needs to find a home." In 2023, only 14% of employees maxed out their 401(k) plan, according to the Vanguard report. For plans offering catch-up contributions, only 15% of employees participated.
Roya News
09-02-2025
- Health
- Roya News
Global medical community fears for safety of Dr. Hussam Abu Safiya
released a report concerning medical professionals from around the globe expressing deep concern for Dr. Hussam Abu Safiya, the director of Kamal Adwan Hospital in Gaza, who was taken into custody by the Israeli Occupation Forces (IOF) during a raid on Dec. 27, 2024. Since his detention, there have been no updates regarding his safety or well-being, raising fears that he may suffer a fate similar to Dr. Adnan Al-Bursh, an orthopedic surgeon who died in IOF custody in April after being arrested during a military operation in the Jabalya refugee camp. Abu Safiya's arrest has ignited widespread outrage among healthcare workers, who view it as part of a systematic targeting of medical professionals in Gaza. Dr. Semia Sadfi Charbonnier, a general practitioner in Geneva and a member of the International Healthcare Workers Coalition, emphasized the gravity of the situation, stating, "We're very, very afraid of that," referring to reports of torture in IOF detention. She added, "Because Dr. Abu Safiya is like a symbol of resistance, and Israel doesn't like that. They want to cut the head of all resistance of the Palestinian people." Charbonnier described Abu Safiya as a highly respected figure, saying, "For us, Dr. Hussam is more than a doctor. He's a hero." She called for stronger international pressure on "Israel", insisting that mere resolutions are insufficient and highlighting the need to end the impunity surrounding such actions. Sara Galli, an anesthesiologist in the Netherlands and spokesperson for Doctors for Gaza, echoed these sentiments, raising alarms about the treatment of healthcare workers in Gaza. She pointed to documented instances of abuse, torture, and deaths under Israeli Occupation detention, emphasizing that the broader context of human rights violations cannot be overlooked. Galli cited high-profile cases of detained medical professionals, including a hospital director held for eight months without evidence and a pediatrician who suffered severe weight loss due to starvation. "We have had multiple accounts of abuse and torture, both to medical personnel and regular Palestinian detainees," Galli stated, adding that these allegations have been substantiated by credible international organizations like Human Rights Watch (HRW) and Amnesty International. She criticized the lack of concrete evidence supporting accusations against Palestinian healthcare workers, arguing, "There have been a lot of accusations, but there's not been any proof." Dr. Huseyin Durmaz, a family physician in Gaziantep, Turkiye, characterized the detention of Abu Safiya as "an unprecedented event in the world." He lamented the potential torture and lack of communication surrounding Abu Safiya's case, declaring, "We will not stop until Dr. Abu Safiya and all detained healthcare workers are released, returned to their duties, and those responsible are held accountable."
