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You still have time to make decisions that can improve your tax situation. This year's tax deadline date is near (April 18th, 2016). Here are some things to consider taking advantage of before the tax deadline:
- Contribute the maximum amount allowed to your retirement and other tax-advantaged plans. How much you can contribute depends on your age, filing status, and income. Find out how much you can contribute.
- Take required minimum distributions (RMD) if you turned 70½ in 2014. Not taking the RMD means you are subject to a 50% tax on the undistributed amount. Learn more about RMDs.
- Consider converting a Traditional IRA to a Roth IRA. You will pay taxes upfront on the conversion, but your distributions will be tax-free in the future.
- Spend the money in your flexible spending accounts before it goes away. Many employers have a grace period until March 31, 2015 to spend 2014 contributions to a flexible spending account. Refill prescriptions, get your teeth cleaned, or buy that second pair of glasses.
- Make sure you have received all of the tax documents—W2s, 1099s, K-1s—that you will need to file your tax return. You don’t want to be scrounging around at the last minute.
And a sixth to-do that makes sense any time: Consult with your tax advisor or financial planner to put a retirement savings and investment plan in place that will serve you well into the future. To learn more about smart investment strategies, please visit our Entrust Learning Center by clicking the image below.
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