Group 1: Flexible Spending Accounts (FSA) - FSAs are employer-sponsored benefits allowing employees to save pre-tax dollars for qualified healthcare and dependent care expenses, including out-of-pocket costs like deductibles and copays [2][5] - The IRS sets and adjusts FSA limits annually for inflation, and some employers may set lower limits for their plans [1] - Unused FSA funds typically must be used within one year, with no rollover option for leftover cash [5] Group 2: Health Savings Accounts (HSA) - HSAs can be paired with high-deductible health insurance plans, allowing pre-tax contributions that lower tax liability [4] - HSAs offer tax-free growth and withdrawals for qualified medical expenses, with annual contribution limits set by the IRS [3] - Unused HSA funds can roll over to the next year, providing an opportunity for compound growth through investments [3] Group 3: Retirement Accounts - Traditional 401(k) plans allow pre-tax contributions, lowering taxable income, with annual contribution limits adjusted for inflation by the IRS [6] - Employers may offer matching contributions to 401(k) plans, incentivizing employees to contribute a percentage of their salary [7][8] - Aiming to contribute at least 15% of salary to a 401(k) is recommended, especially considering employer matches [9][10] Group 4: Employee Stock Purchase Plans (ESPP) - ESPPs allow employees to purchase company stock at a discount, often requiring a minimum employment period to qualify [11] - Diversification of holdings is advised to mitigate risks associated with stock ownership [12] Group 5: Tax Credits and Workplace Perks - Tax credits can significantly reduce tax liability and are often more valuable than deductions, with common credits including the Earned Income Tax Credit and Child Tax Credit [19] - Employers may offer various perks, such as tuition reimbursement and commuter benefits, which can help reduce living costs [15][13]