Whether you are having a good year, rebounding from recent losses, or still struggling to get off the ground, you may be able to save a bundle on your taxes if you make the right moves before the end of the year.
As we know the holidays are soon to be approaching, and its not too late to act before December 31st. Let's take a look at some of the tax strategies that you can use right now given the current tax situation. 1. Contribute to a tax-advantaged savings plan. Contributing to a 401(k) or an IRA may be the smartest tax move that most taxpayers can make. Not only does it reduce your taxable income for the current tax year and allow your potential earnings to grow on a tax-deferred basis, it also helps get you closer to achieving your retirement savings goal. Contributions to your 401(k), 403(b), or similar workplace retirement plan must be made by December 31, 2014, to impact your 2014 taxes, so you need to act quickly to increase your deferral. The 2014 401(k) contribution limit is $17,500 ($23,000 for people age 50 or older). With an IRA, you have until April 15, 2015, to make a 2014 tax-deductible contribution1 of up to $5,500 ($6,500 if you’re age 50 or older).
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