Now that we’re in midyear, ask yourself about your financial progress. Are you on track? Do you need to make changes over the next six months?

Here are a few moves that can help bolster your savings, lower your taxes,¹ or put more money in your pocket:

Check Your Savings Rate

Are you meeting your savings target, or do you need to do more? If it's the latter, employers usually allow workers to boost their contributions to a 457(b), 403(b), or 401(k) plan at any time during the year.

In 2026, workers of all ages can save up to $24,500 in a 457(b), 403(b), or 401(k) plan, while those 50 and older can contribute an extra $8,000. Employers can offer "super catch-up" contributions — up to $11,250 — to workers aged 60 to 63, for a total savings of $35,750. Learn more about  this year’s contribution limits.

Contributing pre-tax money into these accounts lowers your current taxable income. You can also consider contributing to a Roth account,² which can lead to tax-free income in retirement.  Use our Roth Analyzer  to explore the impact of Roth contributions.

Create or Replenish an Emergency Fund

This is money set aside in a separate account to cover unexpected expenses or to tide you over in the event of a layoff. Generally, the fund should contain enough cash to cover three to six months’ worth of living expenses.

Review Your Spending

If money is tight and saving is a challenge, look for expenses you can reduce or eliminate. For example, cancel subscriptions you no longer use, dine out less, or re-shop your auto and homeowners policies to find coverage at a lower cost.

Plan for Next Year’s Tax Bill

Effective tax planning is a year-round endeavor. The steps you take now may help qualify you for these three tax breaks¹ in the next filing season:

• Saver’s Credit. This tax break rewards low- to moderate-income taxpayers for contributing to a retirement account, such as a 457(b), 403(b), and 401(k) plan or IRA. The size of the credit is based on your income and the amount you contribute. The maximum credit is $1,000 for single filers and $2,000 for married joint filers.   ​

• Health Savings Account. An HSA has three tax benefits: tax-deductible contributions, tax-deferred growth, and tax-free withdrawals to cover medical expenses. To qualify, you must have a high-deductible health plan. In 2026, the maximum contribution is $4,400 if your plan covers just you or $8,750 if you have family coverage.  ​

• Charitable Deduction. You can deduct charitable contributions made during the year if you file an itemized tax return. Make sure to keep supporting documentation of your gifts.

The average tax refund this past filing season was $3,055, according to the latest IRS figures. If you regularly get big refunds, consider adjusting your W-4 form with your employer to reduce your tax withholdings. Your refund next year may be smaller, but you’ll have more money in each paycheck that you can put toward savings or other goals.

Review Your Asset Allocation

Have recent losses in the markets kept you up at night or tempted you to bail out of your investments? Panic selling is never wise. And if you're several years away from retirement, you may have time for your investments to recover. Find out how market volatility works and ways to manage your investments.

But sleepless nights can be a sign that it’s time to meet with a financial advisor who can help you determine whether your asset allocation — the mix of stocks and bonds in your portfolio — is still in line with your risk tolerance and financial goals.

Disclosures

¹ MissionSquare does not provide tax advice. Please consult your tax advisor regarding your specific situation.

² Qualified distributions are federal income-tax free, have a five-year holding requirement, and may be withdrawn upon attaining age 59 1/2, disability, first-time home buyer expenses, or death of account owner. Nonqualified distributions are subject to federal income tax, which may apply to the earnings portion of IRA assets. Also note that a penalty may apply to non-457(b), 401(a), 401(k), or 403(b) plan assets rolled into the account and then withdrawn prior to age 59 1/2.