M ONEY & FIN AN C E
TAX DEDUCTIBLE STRATEGIES
As the summer is steaming ahead and the chill of winter is a distant memory, we start thinking back to last year. One of the things that we are always looking to do is to pay less in taxes this year than we did last year. We look back at our taxes and look for ways to have more deductible strategies for this year so that we will have less of our income going out for income taxes and more money being put away for our families’ futures. During my many annual reviews with clients, we always look for ways to try to reduce their income taxes and create pools of income for retirement and family legacies. These strategies include retirement strategies and charitable strategies that can save on your current income taxes and create assets or income streams now or later for you. The most common tax deduction is a tax qualified retirement plan … plans like 401K’s, SEP’s, IRA’s, SIMPLE IRA’s, Defined Benefit Pension plans, 403B plans, 457 Plans, Charitable Remainder Trusts, among other strategies. The benefit to most tax-deductible strategies is that they give you immediate tax relief. The disadvantage to many of the instant tax savings strategies is that they can cause more tax issues years down the road. Qualified retirement plans are the way that most people get tax deductions or tax deferrals. The limit for 401K, TSP, and 403B plan deductions for this year is
38 | July | Aug | Sept 2014