In Brief: Dec. 27, 1999

MAX OUT YOUR ACCOUNT At tax time next spring, be sure to review your 1999 medical expenses. Self-employed individuals and employees of companies with 50 or fewer workers have until April 15 to make tax-free contributions to medical savings accounts, which can be used with high-deductible health plans to pay medical costs. "You want to make sure you've contributed the maximum allowable," says Jack Strayer of the National Center for Policy Analysis. The ceilings range from $2,250 for individuals to $4,500 for families.

BACK TO SCHOOL Thanks to a law President Clinton signed last week, employees whose companies pay college expenses now have more time to complete their course work. The legislation extends employer-paid educational assistance that was to run out next May until Jan. 1, 2002. Employees can receive up to $5,250 a year tax-free for their undergraduate expenses, including tuition, books and fees. Companies typically provide the money as a re-imbursement for employees after a course has been completed. About 1.5 million U.S. workers are enrolled under the plan.

DON'T DO IT! If you're feeling strapped for cash this holiday season, here's a word of caution about so-called payday loans from high-interest lenders: Don't even think about it. These single-payment loans, which are legal in some 30 states, can be more than you bargain for and carry an interest charge that amounts to 500% on an annualized basis. "This is no different than taking a cash advance on your credit card," says Jean A. Fox of the Consumer Federation of America. "It's just more expensive." Anyone in a cash crunch would do better to seek a credit counselor, take out a long-term loan or make arrangements with a creditor to stretch out payments.

--By Aixa M. Pascual