What Year End Tax and Financial Planning Measures Can We Take to Reduce Taxes and Improve Finances?
Q: With the end of the year quickly approaching, what are some important tax and financial planning measure we can take to reduce our taxes and improve our financial position? The Problem – Year-End Financial Oversights and Mistakes With so many gifts to purchase and holiday parties to attend, it is easy to forget important year-end tax and financial planning measures that can save you taxes or bear financial benefits for years to come. The Solution – Take Action in the Next Two Weeks Many tax and financial planning deadlines are based on a calendar cycle – do them after December 31st and lose the benefit for that year. Outlined below are some of the most common oversights and mistakes to avoid before the year comes to a close. 1. Not Contributing to Your 401(k) or 403(b) Not only do you build your retirement nest egg, but you also gain a tax break by contributing to your employer’s retirement plan. Better yet, many employers will match your contributions. Unfortunately, there is a cap
