The Health Savings Account (HSA) is the MVP of tax-advantaged accounts because it offers three valuable tax savings benefits. It allows for a tax-deductible contribution, tax-free growth and tax-free withdrawals for qualified expenses.
While taxes are due in April for calendar 2017, certain gestures must be made before 2017 ends. Freelancers should make sure to open retirement accounts (SEP IRA) by 12/31, even though they have until mid-April to fund them. Freelancers should also review income from 2017 to see if it’s trending higher or lower, and whether that might impact taxes. Mitigation strategies in an up year might include adding funds to a retirement account or HSA, which can help lower adjusted income.