My regular readers know that I think of everyone I meet as a "retiree" or a "future retiree," no matter their age. And yes, in case you're wondering, I don't exclude 5- and 10-year-olds from the future retiree definition. Even they will want to retire someday.

Given that perspective, I always like to share ideas that may be missed when trying to maximize retirement savings -- and right now, the mailbox is full of tax reports for 2024 taxes. This is the perfect time to think about a 2025 action plan to boost retirement savings.

You can contribute to both a company 401(k) and an IRA (individual retirement account) at the same time. The IRS website page for IRA FAQs, in answer to the question "Can I contribute to a traditional or Roth IRA if I'm covered by a retirement plan at work?" states: "Yes, you can contribute to a traditional and/or Roth IRA even if you participate in an employer-sponsored retirement plan (including a SEP or SIMPLE IRA plan)" (tinyurl.com/2hfmwt2m).

Contribution limits are not reduced to a Roth or traditional IRA based on 401(k) participation. High earners will want to maximize their traditional IRAs, since they may not be eligible to contribute to a Roth due to income limits -- let's come back to those limits shortly. Importantly, limits are not reduced for traditional IRAs for anyone, even if they are participating in a company plan, such as a 401(k). They are reduced, however, for Roth IRAs (not traditional IRAs) based on earnings (not 401(k) participation).

The maximum amount someone can contribute to an IRA in 2025 is $7,000; it's $8,000 for those age 50 and up. The extra $1,000 for those age 50 and older is called a "catch-up" contribution.

Again, while there are no income caps on contributions to traditional tax-deferred IRAs, there are limits on Roth IRAs. Roth IRAs have phaseouts due to income caps.

The most someone can contribute to a Roth IRA depends on modified adjusted gross income (MAGI). A single filer under 50 can contribute up to the limit for a Roth IRA ($7,000) if the person's MAGI is less than $150,000 in 2025. If the MAGI is higher, but less than $165,000, the person can still contribute, but the amount is reduced.

When MAGI is $165,000 and above, no Roth IRA contribution is permissible. However, there is no comparable MAGI limit for traditional IRAs. That is, someone who cannot contribute to a Roth IRA due to earnings limits can contribute to a traditional IRA. Further, there is no MAGI limit on who can convert a traditional IRA to a Roth IRA. If you decide to contribute to a traditional IRA and convert to a Roth IRA, be sure to review your plan with your tax adviser before taking action.

The maximum amount that a person can contribute to a company plan is $23,500 in 2025. Someone who is 50 or older can kick in an additional $7,500 as a "catch-up" contribution. And, starting this year, if you turn 60, 61, 62 or 63 in 2025, your catch-up contribution is $11,250 instead of $7,500. That means your total employee contribution maxes out at $34,750.

When someone turns 64, the limit returns to the regular catch-up contribution (currently $7,500). A yearly cost-of-living adjustment to the catch-up limit will take effect after 2025.

There is no reduction in 401(k) contribution limits based on whether someone contributes to a traditional or Roth IRA.

The IRS has a Roth Comparison Chart (tinyurl.com/bdf9jsr5) that breaks down the differences between a Roth IRA, a designated Roth 401(k) and a pre-tax 401(k). IRS Publication 590-A covers contributing to an IRA (tinyurl.com/sacam2tx).

Here is an important reminder: Again, be sure to consult with a tax adviser about the approach you should take given your situation, as taxes are unique to the individual. What better time than January to get going with additional contributions to retirement plans?

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION

As people adjust to artificial intelligence (AI) becoming more prevalent in their lives, there comes with it a concern: Can AI be used as a weapon to commit fraud?

The FBI says yes. It issued a public service announcement in December 2024 stating that "criminals exploit generative artificial intelligence ... to commit fraud on a larger scale which increases the believability of their schemes. Generative AI reduces the time and effort criminals must expend to deceive their targets" (tinyurl.com/mr43afzj).

While "the creation or distribution of synthetic content is not inherently illegal," quoting the FBI announcement, "synthetic content can be used to facilitate crimes, such as fraud and extortion."

FINRA goes further: You need to protect your investment accounts from "generative artificial intelligence" or Gen AI (tinyurl.com/5n8n5nz9). FINRA (the Financial Industry Regulatory Authority) oversees member broker-dealers who do business in the U.S.

"Gen AI is making it easier for bad actors to fraudulently open new accounts using investors' identities and to improperly gain access to investors' accounts," warns FINRA.

Gen AI can be used to "exploit traditional identification (ID) verification processes and commit new account fraud and account takeovers in multiple ways," quoting FINRA.

Among the fraud methods highlighted by FINRA:

-- Social engineering: "Fraudsters might use Gen AI to analyze your social media activity to create highly personalized phishing emails that could lead you to fraudulent websites embedded with malicious links."

-- Voice clones: "With Gen AI, fraudsters need only three seconds of audio of you speaking to create a credible-sounding imitation, or voice clone." FINRA notes that Gen AI could be used to impersonate the voice of a loved one in distress so that you provide access to your accounts.

-- Fake ID documents: "Fraudsters can use Gen AI to create convincing fake ID documents." Those documents could be used to take over an existing account or to open a new account.

Among the recommendations offered by FINRA to combat Gen AI:

-- Use a password manager: The U.S government's Cybersecurity and Infrastructure Security Agency describes a password manager as "an easy-to-use program that generates, stores and even fills in all your passwords" (tinyurl.com/33a2huh7). FINRA points out that the benefits of using a password manager include "secure storage, unique and complex passwords, and centralized management."

-- Enable multifactor authentication: This provides "an extra layer of security beyond just a password by requiring you to also enter a code that's sent to your mobile phone via text message or through an authentication application to your account."

-- Monitor your account activity regularly to see if there are unauthorized transactions or new accounts that have been opened, and use identity-theft protection and credit monitoring services.

-- Be aware of phishing attempts -- emails, texts, links and calls that seek personal information. If you are receiving an inquiry coming from a company you recognize, don't reply. Instead, FINRA recommends contacting "the firm directly through its website or by a phone number provided on an account statement or its website."

"Gen AI has made it easier to impersonate consumers and commit fraud," quoting FINRA. "Although financial institutions are working to fight fraud on their platforms, it's in your interest to also take actions to protect yourself and to alert firms to any suspicious activity."

According to the FBI's most recent Internet Crime Report, released in 2024, three of the top five categories of reported crime were Phishing/Spoofing, Personal Data Breach and Investment (tinyurl.com/4n83c8m7), with a combined total loss of more than $5.3 billion.

If you feel that you may have been compromised, you can report possible Gen AI or other investment fraud attempts to FINRA (tinyurl.com/2nva9m57), the U.S. Securities and Exchange Commission (tinyurl.com/ycxwsnp4) and the FBI's Internet Crimes Complaint Center (tinyurl.com/mf643tj5).

The best advice? Don't assume legitimacy. Assume the opposite. If your caller ID identifies the caller as your local bank, don't take the call. Instead, initiate a call using the phone number that you normally use. If you receive an email telling you that your account has been compromised, don't assume that it's legitimate. Instead, contact your bank directly.

In this day and age, perhaps it's better to initiate rather than react. To stay safe, take the initiative to check your accounts periodically.

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION

The IRS recently announced that its Free File Guided Tax Software will be available for taxpayers beginning Jan. 10, ahead of the official opening of tax filing season later in January. Available services vary based on income levels.

For those with adjusted gross incomes (AGIs) of $84,000 and up, Free File Fillable Forms are available beginning Jan. 27, according to the IRS news release "IRS Free File opens Friday" (tinyurl.com/fp398pzj).

For those with AGIs less than $84,000, eight private-sector partners are providing online guided tax software products for taxpayers. One of the partners, exTaxReturn.com, will have an IRS Free File product in Spanish. (You can find out more details about Free File tax software and Fillable Forms at tinyurl.com/yu8vbbn6.)

For those with an AGI of $67,000 or less or who are disabled, the IRS has Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs, where trained individuals "provide free tax help for low-to-moderate income families who need assistance preparing their tax returns" (tinyurl.com/bddevu4e).

According to the IRS, the VITA program is for people who make $67,000 or less, taxpayers with disabilities and those who speak English on a limited basis.

The TCE program is "particularly for those who are 60 years of age and older, specializing in questions about pensions and retirement-related issues unique to seniors," quoting the IRS Free tax return preparation webpage (tinyurl.com/wcfxxvd3).

If you are interested in getting help, look for sites near you by using internet search tools or by calling via phone. For searching the VITA and TCE sites, see tinyurl.com/3pxt7ccz. You'll need to enter your ZIP code to find locations near you. The results will indicate the addresses, which languages are spoken and if making an appointment is required. You also can call 800-906-9887.

The IRS points out that the majority of TCE sites are operated by the AARP Foundation's Tax Aide program. The AARP also offers a search tool (tinyurl.com/ymka7hnd), or you can call 888-227-7669.

There is a list of things you will want to bring to the appointment, which you can find on the IRS webpage "What to bring to your local VITA or TCE site." Included in the list are things like:

-- Original photo ID for you and your spouse (if married and filing jointly), like a driver's license or an employer or school ID

-- Social Security cards for you, your spouse and your dependents

-- Wage and earning statements

-- A copy of last year's federal and state tax returns

Be sure to check out the full list at tinyurl.com/4n99cebx.

Nick Giuntini volunteers doing taxes with AARP Tax Aide in Stamford, Connecticut. He said the biggest advantage for people using the service is "either cost and/or time savings, as well as peace of mind that it is correct versus doing it on their own."

Giuntini pointed out that earned income tax credits and education credits are things that people may overlook or not fully understand, yet they can benefit from them. He added that if you have a low income and also have children, "you may not have a tax liability, but you could be eligible for the earned income tax credit." (You can find more details about that at the IRS webpage "Earned Income Tax Credit" -- tinyurl.com/adbzhp8e.)

Giuntini also noted that when it comes to state taxes, Connecticut residents may not realize that house and/or car property taxes can sometimes result in a partial tax credit.

Connecticut's AARP Tax Aide will open on Feb. 1. You can go to the AARP Tax Aide website for Lower Fairfield County at tinyurl.com/4wvpwkfc for more information.

For all taxpayers, the IRS webpage "Get ready to file your taxes" (tinyurl.com/4nak5fdd) can help you prepare for filing this year's income tax form.

If you are interested in volunteering with the IRS for free tax preparation, see the IRS webpage "People helping people" (tinyurl.com/43vpj46w).

DISTRIBUTED BY ANDREWS MCMEEL SYNDICATION