Originally published April 2016. Last updated March 2026.
Tax season is over. Before you shove those documents into a drawer and forget about money until next April, take an hour to check three things that could save you thousands.
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1. Review Your Estate Plan
Only about 33% of Americans have an estate plan, according to a 2024 Gallup survey. If you don’t have one, this is the push you need. If you do, when was the last time you reviewed it?
Marriage, divorce, the birth of a child, a move to a different state, or a major change in assets should all trigger a review. Beneficiary designations on retirement accounts and life insurance override your will, so check those too.
2. Increase Your Retirement Contributions
Tax season gives you a clear picture of your income and expenses. Use that clarity to bump up your retirement savings:
- IRA: $7,000/year ($8,000 if you’re 50+)
- 401(k): $23,500/year ($31,000 if you’re 50+, $34,750 if you’re 60-63)
- HSA: $4,300 individual / $8,550 family (if you have a high-deductible health plan)
If you got a tax refund, consider putting it directly into your IRA. You have until the tax filing deadline to make prior-year contributions.
3. Check Your Insurance Coverage
Life changes affect your insurance needs. Review your coverage for:
- Life insurance: Does the death benefit still match your family’s needs? A rule of thumb is 10-15 times your income, but the real answer depends on your debts, dependents, and other assets.
- Disability insurance: This is the most underrated coverage. Your ability to earn income is your biggest financial asset. Most employer plans cover 60% of salary, but some cap the benefit.
- Umbrella policy: If your net worth has grown, an umbrella policy adds liability protection above your auto and home insurance limits. Usually $1-2 million in coverage costs $200-$400/year.
FAQ
Should I adjust my tax withholding?
If you got a large refund or owed a lot, yes. A big refund means you’re giving the IRS an interest-free loan. Owing a lot means you may face underpayment penalties. Use the IRS withholding estimator to dial it in.
When is the deadline for prior-year IRA contributions?
The tax filing deadline, typically April 15. If you file an extension, the contribution deadline does not extend. You still have until April 15.
Schedule a free 20-minute consultation to make sure your financial plan is on track.
R.L. Brown Wealth Management
106 W Vine St, Suite 300, Lexington, KY 40507
859.317.5889
