Tag Archive for Year End Planning

Year-End Planning – Retirement Plans

Retirement plans come in many different flavors with many different rules.  Maybe there are fewer than the flavors of coffee at Starbucks, but there are still quite a few flavors of retirement plans.  The end of the year is a good time to review your retirement plan decisions.

A few plans need to be funded before the end of the year; a few plans just need to be set up before the end of the year.  IRAs and 401(k) plans are the two common retirement plans and their rules are different.  The 401(k) plans need to be funded by the end of each calendar year through the payroll.  IRA contributions can be made through the due date of the return and still be tax deductible – a nice benefit.  You can wait until spring and prepare your return Read More

Written by | Posted in Retirement • Tax Tips

Year-End Planning – Charitable Contributions

Charitable contributions are one of the things that taxpayers can fully control when trying to get the best tax deduction.  The end of the year is often when people make charitable contributions.  People are making good on their charitable pledges for the year and the holiday season is a popular time to solicit donations and hold special events for charities.

Charitable contributions are allowed as an itemized deduction for taxpayers.  The deduction is limited to 50% of the taxpayer’s adjusted gross income for the year.  Sometimes for taxpayers with large contributions and a low income, planning the timing of contributions around that 50% limitation is critical.  Any excess charitable contributions can be carried forward, but that carry-forward only lasts five years. Read More

Written by | Posted in Individual • Tax Tips