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Four Accounts That Can Change Your Financial Life

April 19, 2019

There are four accounts that you may or may not be aware of that can change your financial life. This is not clickbait, we want to share with you about these accounts because they can transform your finances. We were inspired to produce today’s episode from the many emails and questions we have received from you, our loyal listeners.

As you know, The Money Guy Show exists to help you make simple and smart choices with your money. We are passionate about everyone saving for the future, and we always want to make sure that we help you succeed. Tune in to this week’s episode as we share the four investment accounts that can potentially change your life.

Here’s What You’ll Find Out in this Episode:

  • ABLE Account
    • This is an investment account that allows you to save money to be used for expenses related to care for individuals with special needs. It is built on the same platform as 529 plans. In 2019, you can invest up to $15,000. The money put into an ABLE account grows tax-free and qualified distributions are also tax-free.
  • Health Savings Account (HSA)
    • These accounts offer a triple tax advantage for people who have a high-deductible health plan. Funds go in pre-tax, grow tax-free, and withdrawals are tax-free when used for qualified medical expenses. You can invest up to $3,500 for an individual and $7,000 for a family account in 2019.
  • Dependent Care Flex Spending Account
    • You can utilize a Dependent Care Flex Spending Account along with an HSA. This account is exempt from income and payroll taxes. You can utilize this account for daycare, afternoon school programs, summer camps, or other dependent expenses. You can have up to $5,000 withheld per year.
  • Custodial Minor Roth IRA
    • This is a Roth IRA for minor children (under the age of 18) that have earned income. The child has to file a tax return to show income. The parent or guardian will have control of the account until they are 18 or 21 depending on state guidelines. You can invest up to $5,500 per year just like a non-custodial Roth IRA.

Resources Mentioned in This Episode and Related Episodes

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