Navigating Tax Season at MASSMutual: 6 Essential Steps for Financial Wellness

Healthcare Provider Update: Healthcare Provider for MassMutual MassMutual primarily collaborates with a range of healthcare providers through its employee benefits plans but does not operate a dedicated healthcare provider network itself. Instead, MassMutual provides health insurance options to its employees through various partnerships with leading insurance carriers. Projected Healthcare Cost Increases for 2026 As we approach 2026, healthcare costs are anticipated to increase significantly, with potential premium hikes driven largely by the expiration of enhanced federal subsidies for ACA marketplace enrollees. Experts forecast that Americans could face average increases of over 75% in out-of-pocket premium costs due to these subsidy reductions, alongside aggressive rate increases from major insurers, some of which are as high as 66.4% in places like New York. Furthermore, rising medical costs and inflation are compounding the financial strain on consumers, marking 2026 as a challenging year for healthcare affordability. Click here to learn more

In this article, we will discuss:

1. Increasing Retirement Contributions: Understanding how IRA contributions and Roth IRA conversions can reduce taxable income and bolster your financial plans.

2. Tax-Efficient Investment Strategies: Exploring methods such as tax gain harvesting and charitable giving to enhance investment outcomes while reducing tax liabilities.

3. Organizing for Better Results: The importance of accessing, organizing, and understanding key tax documents and deadlines to simplify the tax filing process.

Preparing for tax season is crucial for maintaining a strong financial foundation, especially when refining investments and utilizing potential tax benefits at MASSMutual. Here are six important steps tailored for the upcoming tax season, designed to simplify tax management and enhance financial strategies.

1. Assess Your Tracking at MASSMutual

First, evaluate your current stock to make preliminary tax estimates. This review can help you adjust your expenses or income before the year's end, so you are not caught off guard by unexpected taxes. This is a practical approach to aligning your financial plan with recent tax regulations.

2. Review IRA Contributions

Contributing to an Individual Retirement Account (IRA) before the year-end can help MASSMutual employees build retirement reserves.  For the 2024 fiscal year, the deadline to make an IRA contribution, which may reduce your taxable income, is April 15, 2025.  Additionally, consider a Roth IRA conversion by December 16, 2024, to better manage future tax liabilities while retaining sufficient resources for distributions.

3. Explore Charitable Giving

Charitable donations support meaningful causes and may also provide tax benefits , particularly if you contribute appreciated stock. This method can amplify the impact of your contributions while managing your taxable income. Critical deadlines for charitable donations are December 2, 2024, for mutual funds or options, and December 16, 2024, for stocks, bonds, or cash contributions.

 

4. Review Investments and Taxes

It’s important to evaluate your gains, losses, expenses, and income as a MASSMutual employee.  Strategies like tax gain harvesting can reduce taxes on investment profits.  Understanding the tax implications of different types of investment income, whether treated as ordinary income or subject to deductions, is vital. Consulting a trusted financial advisor can provide tailored recommendations for investments with tax considerations in mind.

5. Organize and Access Tax Documents

Organizing tax documents such as Forms 1099 and 1099-R will ease the filing process.  These forms are expected to be available by January 31, 2025, for retirement accounts and Coverdell education savings accounts, while brokerage accounts will be available by March 15, 2025. Early organization can help prevent delays and improve accuracy in tax filing.

6. Expand Your Tax Knowledge

Building a better understanding of tax laws can be advantageous. Identifying complex tax issues, like the alternative minimum tax or payment strategies, can lead to meaningful tax reductions. The deadline for taxable transactions, such as the sale or purchase of stocks, mutual funds,  and ETFs, or closing short-sale positions for the 2024 fiscal year, is December 27, 2024.

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For MASSMutual employees nearing the retirement age of 65, understanding how social security benefits impact tax obligations is important.  Receiving social security benefits before retirement while earning an income could result in a portion of those benefits being taxed if your combined income exceeds certain limits.  According to the Social Security Administration, about 40% of individuals pay taxes on their benefits.

Preparing for tax season is like tuning a classic car: meticulous attention to detail can significantly improve outcomes. While a car enthusiast adjusts the engine, maintains the body, and checks every part to optimize performance, individuals must carefully evaluate their financial portfolios with a comprehensive tax plan. Refining IRA contributions reflects the precision needed to maintain a well-functioning engine. Charitable giving can be seen as a custom addition that enhances the overall design. Organizing tax documents and expanding tax knowledge is like compiling the car’s history, ensuring everything is prepared for a seamless unveiling. Each step, thoughtfully implemented, keeps your financial journey running as smoothly and effectively as a classic car prepared to shine.