A midyear financial review is often a good idea. This year, it’s almost essential.
With people going back to offices, travel resuming and Congress making significant changes to various laws affecting your finances, consider taking some time to check in on your money. You might be able to make some smart moves to reflect the new realities.
See where your money is going now. Using a budgeting app or taking a close look at recent bank and credit card statements can help. Then think about expenses you may face in the near future.
2. Debt forbearance
Forbearance on federal student loans is scheduled to end this fall, with monthly payments resuming in October. If those payments would be a hardship, contact your lenders to see if income-driven repayment plans or other measures would help.
3. Flexible savings accounts
Congress more than doubled how much employees can contribute to flexible spending accounts for child care in 2021. Workers can put in a maximum of $10,500, up from $5,000 in 2020. The limit for health care FSAs remains $2,750.
4. Frequent traveler programs
Last year airline, hotel and rental car companies softened the rules for their loyalty programs to reflect pandemic travel restrictions. But the pause on expirations won’t last forever. Check your rewards programs and make plans to use your rewards before they disappear.
5. Health insurance
If you buy your own insurance, you may get a better deal on the Affordable Care Act exchanges now that Congress has expanded the subsidies, reducing costs for most people. If you don’t already have ACA coverage, there’s currently a special enrollment period that ends Aug. 15. If you get unemployment benefits at any point during 2021, you can qualify for a zero-premium comprehensive policy. COBRA coverage to extend an employer health insurance plan is also free from April to September.
6. Retirement planning
Companies with 401(k)s are now required to let part-time workers contribute if they have worked more than 1,000 hours in one year or 500 hours over three consecutive years. Contact your employer for details.
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A midyear financial review is often a good idea. This year, it’s almost essential. With people going back to offices, travel resuming and Congress making significant changes to various laws…
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