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business Tuesday 5 January 2021
Start 2021 off strong with these money moves

By LIZ WESTON of NerdWal- available company match clude insurance premiums, Flexible spending accounts
let in a 401(k) or 403(b), look property taxes, car and are employer-provided
After the train wreck that into funding a Roth IRA. Fi- home repairs, vacations, benefits that allow you to
was 2020, you may well nancial planners often rec- back-to-school shopping put aside tax-free money
question whether it’s worth ommend having at least and holidays. Check your for medical or child care
trying to plan anything. But some money in a Roth so spending in each of these expenses. If you signed up
knocking off a few finan- you can better control your areas for the past few years for your employer’s medi-
cial tasks early in the year tax bill in retirement. If your to ballpark how much to cal FSA, try to spend that
can better prepare you for income is too high to make save this year. Once you money as early in the year
whatever 2021 has in store. a direct Roth contribution have your savings goals as possible. You don’t have
FILE YOUR TAX RETURN ASAP — the ability to contribute for each category, con- to wait until the money is
Filing your tax return early starts to phase out at modi- sider setting up separate taken from your paycheck
typically means getting fied adjusted gross income savings accounts at an to use it for eligible health
your refund sooner. Not of $140,000 for singles and online bank that doesn’t care expenses. (That’s dif-
only that, it could thwart $208,000 for married filing charge monthly fees. You ferent from child care FSAs,
refund-stealing identity jointly — you could consid- can divide the amounts by which don’t allow you to
thieves. Also, If you were This undated file photo er converting a portion of the number of paychecks spend money before you
owed a stimulus check in provided by NerdWallet an existing traditional IRA. you’ll get before the mon- contribute it.) Spending
2020 but didn’t get one, or shows Liz Weston, a columnist CHECK YOUR SPENDING ey is needed, and set up early has a few advan-
should have gotten more, for personal finance website Budgeting apps and per- automatic transfers from tages. You don’t risk leav-
you can claim the missing NerdWallet.com. sonal finance websites can your checking account to ing money in the account
Associated Press
money on your return. help you see where your the appropriate savings and potentially losing it.
If you owe the IRS, it’s bet- A good tax withholding cal- money went in 2020 and account after each pay- (Many employers extend
ter to know sooner rather culator can help you de- help you make a plan for day. the deadline for using the
than later. You’ll have termine how to adjust the 2021. You can also look PUT CHARITABLE CONTRIBU- money past Dec. 31, but at
more time to find the mon- amounts taken from each back over bank or credit TIONS ON AUTOMATIC some point unspent money
ey or arrange a payment paycheck. Then, contact card statements. But even if Most charities prefer get- is forfeited.) Incurring medi-
plan. Also, unemployment your employer if you need you can’t get the full year’s ting regular contributions cal expenses early in the
checks are generally tax- to make changes. worth of transactions, re- throughout the year, since year can help you meet
able. Many people who re- If you’re self-employed, viewing just a few months the steady income helps insurance deductibles, too,
ceived last year’s extended you may need to make can show you some pat- them plan. You may dis- so the rest of your health
jobless benefits may face a estimated quarterly pay- terns and help you iden- cover you can give more if care can cost less. Also, if
larger-than-expected tax ments. You could consult a tify spending you want to you’re not trying to squeeze you leave your job during
bill this year, tax experts say. tax professional to find out change. your contributions in with the year, you don’t have
CHECK YOUR WITHHOLD- how much those should be. SET UP YOUR SAVINGS other year-end spending. to finish making FSA contri-
ING ADJUST YOUR RETIREMENT ‘BUCKETS’ You can use your bank’s bill butions. In other words, you
Once your 2020 tax return is SAVINGS Preparing for irregular but pay system to send monthly can spend the full amount
prepared, you can use that Consider increasing and predictable expenses can checks or arrange with the you had planned to con-
and your first pay stub from diversifying your retirement help you feel less panicked charity to charge a credit tribute, up to $2,750, with-
2021 to see if you’re on contributions. After you when those bills arrive. card. out actually having to con-
track with tax withholding. take full advantage of any These expenses can in- SPEND YOUR MEDICAL FSA tribute the full amount.q

Bid to address health costs by 3 corporate giants is over

By TOM MURPHY couraged access to prima-
AP Health Writer ry care.
INDIANAPOLIS (AP) — A She said the company also
health care venture con- identified areas for cutting
ceived by Amazon, Berk- drug costs.
shire Hathaway, and JPM- Health care costs have
organ to attack soaring vastly outpaced wages
costs is dissolving. and inflation, stressing
Haven, which was formed families and employers for
in 2018 by the three U.S. years. Benefits experts had
corporate giants, will end expected any solutions de-
operations by the end veloped by Haven to be-
of February, a company come widely adopted be-
spokeswoman said Mon- yond the three companies
day. She gave no reason that created the venture.q
for the end of the venture.
The independent com- This combination of file photos from left shows Warren Buffett, chairman and CEO of Berkshire
pany was created to fo- Hathaway, on Sept. 19, 2017, in New York, Jeff Bezos, CEO of Amazon.com, on Sept. 24, 2013, in
cus on improving the care Seattle and JP Morgan Chase Chairman and CEO Jamie Dimon on July 12, 2013, in New York.
Associated Press
delivered to employees of
those businesses while do-
ing a better job of man- venture. May. Haven's remaining said the company started
aging the expense. The In 2019, the company employees will be ab- a new design for health
companies then picked a picked a name for itself, sorbed by the three com- care benefits that eliminat-
high-profile CEO, Harvard but it had been largely si- panies involved in its cre- ed patient out-of-pocket
professor and surgeon Dr. lent since then. ation. payments like deductibles
Atul Gawande, to lead the Gawande departed last A Haven spokeswoman and co insurance and en-