Your End-of-Year Health and Wealth Checklist

The Holidays are here – and that means it’s time to take care of some important things regarding your insurance planning and healthcare benefits.

Some of them have strict year-end deadlines. Others you have until April 15th to get them done. But in nearly all cases, the sooner you get them accomplished, the better.

Here are six of the top items that should be on your year-end to-do list. 

1. Lock in your health plan for 2025.

If you already have a health plan you like, you probably don’t need to do anything. Most plans will automatically renew as long as you keep paying your premiums.

But if your financial or medical situation has changed, you might be better off in a different health plan.

The deadline to enroll in a new health insurance plan is January 15th in most states. But if you want an effective date of January 1st, you need to get it done by December 15th.

For free help enrolling in a new health plan, contact your Personal Benefits Manager.

Tip: Don’t wait to make an appointment! This time of year, we typically get completely booked!

2. Max out your 401(k), 403(b), or other workplace retirement plan contributions.

Not only does this help reduce your taxable income for the year, it also helps you maximize any available health insurance subsidies for next year!

So you get a double benefit. But you need to make your contributions to these plans by the end of the year.

For IRAs, SEPs, and HSAs, you have until April 15th to make your 2024 contributions. But you need to make your contributions to your 401(k) or 403(b) to get a 2024 deduction.

3.Pre-pay deductible expenses, including insurance premiums.

The more tax-deductible expenses you can pay before January 1st, the lower your taxable income will be – and the greater your health insurance subsidies.

Consider pre-paying health insurance premiums, long-term care insurance premiums, and any small business insurance premiums or other expenses that would show up on Schedule C of your individual income tax return before year-end.

Note: Your deduction can’t exceed your earned income for the year. Speak with your tax advisor for details.

4. Bunch your scheduled elective medical procedures.

Personal medical expenses are tax-deductible – but only to the extent they exceed 7.5% of your adjusted gross income. 

So to maximize your allowable deductions, try to bunch as many expected high-dollar medical procedures into a single year. This is much more tax-efficient than spreading them out over two or more years.

If you already have some out-of-pocket medical costs for this year, try to schedule any other planned procedures or services before the year ends.

5. Finish Treatment Programs.

If you’ve been prescribed physical therapy, occupational therapy, or any kind of rehabilitation program, aim to complete it before the end of the year if your deductible has already been met.

6. Plan for long-term care costs.

The cost of a semi-private room in a skilled nursing facility now costs more than $100,000 per year, according to the Genworth Cost of Care study. 

Naturally, this can devour an entire pension or nest egg very easily.

You can insure against it – but you can only buy affordable insurance while you’re still in good health. Unlike health insurance, long-term care insurance is medically underwritten. So get a policy in place before you have an unpredictable health setback. You may not be able to buy it next year.

Taking these steps will help you maximize your healthcare benefits, minimize your costs, and start the new year without unnecessary medical expenses.

Any questions? Your Personal Benefits Manager is there to help!

Thank you very much for being a customer, and have a blessed holiday season and a very happy and healthy New Year!

Click here to schedule an appointment, or call 800-913-0172 to get started.    

To your health and wealth,

Wiley P. Long, III
President - HSA for America

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