As summer winds down, now is the perfect time to take a closer look at your financial picture and make some strategic moves that could reduce your tax bill. Whether you’re a business owner or managing your personal finances, year-end tax planning can help you keep more of your hard-earned money and position yourself for a less stressful tax season.
Maximize Retirement Contributions
Why: Contributions to traditional IRAs and 401(k)s can be tax-deductible. Contributions to Roth IRAs and Roth 401(k)s can generate tax-free distributions in retirement.
How: Ensure you’re contributing the maximum allowed amount to your retirement accounts. We can help you take a look at payroll withholdings and – if you’re a business owner – company contributions to ensure you’re on the right track. Now is the time to do this so you have time to make any corrections before year-end.
For Business Owners: Review Your Entity Structure
Why: Different entity types have different legal & tax advantages.
How: Determine if your current setup offers the most long-term tax-efficiency. If you DIY’d your entity selection or if it’s just been a long time since you’ve taken a look, reach out. We can determine if another or additional entities may be appropriate and help work with you and your attorney to restructure.
