CCPA: 5 Financial Resolutions for a More Prosperous 2025

As we step into 2025, there’s no better time to set your financial house in order. Here are five of our top practical resolutions to guide you to a prosperous year:

1. Max Out Your HSA

If you have an Health Savings Account (HSA) eligible plan, we always recommend you take full advantage of the tax advantages of maxing out your contributions. The rules on what medical expenses you can reimburse yourself for are pretty broad (think doctor bills, but also medicines, therapy, etc.). The 2025 limits are increased to the following amounts:

• $4,150 for individuals

• $8,300 for families

• $1,050 additional catch-up for those 55+ Maxing out your HSA not only helps cover medical costs but also provides triple tax benefits: deductible contributions, tax-free growth, and tax-free withdrawals for qualified expenses.

2. Update Your Retirement Deferrals

Coordinate with your employer to adjust your retirement plan contributions. The 2025 limits for 401(k), 403(b), and similar plans have increased to $23,000 (or $30,500 if you’re 50+). Increasing your deferrals early ensures you stay on track to maximize your retirement savings. It’s much harder to max things out if you wait until the middle of the year to adjust.

3. Set a 2025 Savings Goal

Decide on a realistic savings target for the year, such as setting aside three months’ worth of expenses for your emergency fund. It may take you a while to get there, but if you automate your savings with weekly contributions, you won’t have to think about it and you’ll earn interest along the way. There are a lot of easy options these days to do this: personally, I use a PayPal Savings account (which currently pays 4.1% APR) and have a weekly savings transfer automatically set up to keep me consistent without having to think about it.

4. Check Your Tax Withholding

When you complete your tax returns, consult with your Harmony CPA to review your withholding and ensure you’re on track for 2025. It is easy to change withholdings by updating your W-4 with your employer if you find that you need to make an adjustment.

5. Review Your Budget

January is a great time to revisit your monthly budget. Use popular apps like Truebill or Mint to identify and cut unnecessary recurring charges. Redirect those savings into investments or your personal reserves savings account to help you get to a great place this year.

Cheers to a financially healthy and prosperous New Year!

Regards,

Matt Hetrick, CPA

Harmony Group

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