With tax season top of mind, consider these three IRS-approved ways to save tax-free money.
Maximize your HSA
If you’re enrolled in the Broad Access HSA option, make the most of the triple-tax-advantaged Health Savings Account (HSA) that comes with your medical plan. You won’t pay federal income and FICA taxes on your contributions, withdrawals for eligible expenses or any interest your account earns. The more you contribute (up to IRS limits), the more you save in taxes.
For 2023, the IRS limit for your HSA covering you alone is $3,350 including Rockwell Automation’s $500 annual contribution. If you’re covering your family, the IRS limit is $6,750 including Rockwell Automation’s $1,000 contribution.
Invest in your 401(k)
Within the Rockwell Automation Savings Plan (the “401(k) Plan”), you can make pre-tax contributions and receive a tax break today while saving for tomorrow. Combined with Rockwell Automation’s matching contributions, the 401(k) Plan can be a powerful savings vehicle. Make sure you’re contributing at least 7% to get the most from the company match. Your pre-tax contributions stay tax-free until you withdraw that money.
For 2023, the combined pre-tax and Roth 401(k) contribution limit is $22,500. If you’re age 50 or older in 2023, you can make catch-up contributions up to $7,500. To make updates to your contribution rates, investment elections or beneficiary designations, go to 401k.com or call the Rockwell Automation Service Center at Fidelity at 1.877.ROK.401K (1.877.765.4015). Additional information about the Rockwell Automation Retirement Savings Plan (the “401(k) Plan”), educational tools and workshops can also be found online at 401k.com.
Pay with your FSA
Rockwell Automation offers two Flexible Spending Accounts (FSAs): the Health Care FSA and the Dependent Care FSA. Each of our medical plan options include one or both FSAs:
- If you’re enrolled in the Broad Access Plan option or the High-Performance Plan option, you’re eligible to participate in a Health Care FSA.
- If you’re enrolled in the Broad Access HSA option, you are eligible to participate in a Limited Purpose FSA.
- You’re eligible to participate in a Dependent Care FSA regardless of which medical plan option you chose.
With an FSA you’ll lose the funds you don’t use (minus the $550 you can roll over) before the next plan year. It’s important you take time when you enroll to consider your expected costs for the next plan year, set aside the appropriate amount of money in your FSA and submit your receipts for eligible expenses so you get reimbursed.
If you’re enrolled in an FSA now, learn as much as you can about eligible expenses and how to submit your receipts by March 31, 2024. If you’re not enrolled in an FSA, use this time to plan for the next enrollment period.