Our Top Three Year-End Tax Strategies

While tax day seems far away, the end of the year is rapidly approaching – and now is the time to put that aspect of your financial planning strategy into action. Make the most of your financial planning advisor’s knowledge by coming up with a smart tax plan. Here are our experts’ top tips for the season:

  1. Top Off Your Accounts

Contributing as much as you can to accounts like your 401(k) can help lower your taxable income while growing your savings. Be sure to check on the exact type of retirement plan you have to get the details, but contributing now is usually a good idea. Putting money into accounts like your FSA is also a smart way to save pre-tax – but FSAs do have a “use it or lose it” policy to be aware of (although many employers offer a grace period that extends into the new year). Even contributing to an IRA account can present options for tax deductions. If you haven’t gotten retirement planning advice yet, now is the time!

  1. Defer Your Income

If you’re looking at a raise or bonus bumping you into the next tax bracket, ask your employer to defer until 2018. Wait to sell assets or send invoices until January. There are a number of other ways to defer income – speak with your independent investment advisor or asset manager to maximize your savings.

  1. Join in on Holiday Giving

‘Tis the season for charitable giving and donations! In addition to helping others, charitable gifts can reduce your taxes. Keep receipts for monetary donations and valuations for donations of clothes, automobiles, stocks, and anything else you give. These donations can be made in ways that really benefit your savings, so be sure to check with a registered investment advisor here as well.

The end of the year is also a good time to sit down with financial management experts and review your results from 2017 and set goals for 2018. Find a financial advisor to build a custom plan for taxes and beyond by perusing our directory!

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