Still Time to Save on Taxes Before April 15 Deadline: Key Strategies to Maximize Savings The April 15 tax deadline is less than two weeks away, and while many Americans may believe it’s too late to take advantage of additional savings, tax experts emphasize that there are still opportunities to reduce taxable income and optimize financial planning. President Donald Trump’s tax and spending plan, passed last summer, introduced retroactive tax benefits for 2025 that could significantly impact filers. These changes, including the permanent extension of the 2017 tax cuts and key provisions from the One Big Beautiful Bill (OBBB), are designed to free up capital for millions of taxpayers and unlock new avenues for savings, reinvestment, and small business growth. One of the most effective strategies for reducing taxable income is maximizing contributions to retirement accounts. Taxpayers can still contribute to traditional retirement funds such as 401(k)s or individual retirement accounts (IRAs) up until April 15, allowing them to take the 2025 tax deduction. For 2025, the 401(k) employee contribution limit is $23,500 (combined pre-tax and Roth contributions), up from $23,000 in 2024. Only pre-tax contributions qualify for an upfront tax deduction, while Roth contributions, made with after-tax dollars, offer tax-free withdrawals in retirement. Workers aged 50-59 or 64+ can make an additional $7,500 catch-up contribution, while those 60-63 can contribute up to $11,250. IRA contribution limits for 2025 are $7,000 for individuals under 50 and $8,000 for those 50 or older. If you have a high-deductible health plan (HDHP), you can also make tax-deductible contributions to a health savings account (HSA) by April 15.#president_donald_trump #one_big_beautiful_bill #irs #tax_experts #richard_pon
Federal Appeals Court Ends SAVE Plan for Student Loan Borrowers A federal appeals court has ruled to end the Saving on a Valuable Education, or SAVE, plan, a repayment program introduced by the Biden administration in 2023. The decision, issued by the U.S. Court of Appeals for the 8th Circuit, overturned a previous ruling that had dismissed a legal challenge led by Republicans. The court’s reversal means the SAVE plan, which aimed to reduce monthly payments for millions of borrowers, will no longer be available. The SAVE plan, which allowed borrowers to pay as little as 5% of their discretionary income each month, was designed to ease the burden of student debt. However, Republican-led lawsuits argued the program violated federal regulations, leading to its suspension. The 8th Circuit’s ruling to end the plan has left borrowers in a state of uncertainty, with many now facing the prospect of higher payments or prolonged debt. The Department of Education had previously placed borrowers in forbearance during the legal challenges, meaning they were not required to make monthly payments. However, their loans have continued to accrue interest since August 2024. Undersecretary of Education Nicholas Kent stated that the department will soon provide guidance on transitioning borrowers to legal repayment plans. Experts advise affected borrowers to immediately apply for an Income-Driven Repayment Plan Request form, with the Income-Based Repayment plan (IBR) currently considered the most viable option. For those pursuing Public Service Loan Forgiveness, borrowers are urged to file a PSLF Buyback application to account for the stalled progress under SAVE. The U.S. Department of Education has not yet commented on the court’s decision.#federal_appeals_court #us_court_of_appeals_8th_circuit #save_plan #nicholas_kent #one_big_beautiful_bill
