Below are a number of tax tips that you can still take advantage of before year end.
- Top off your retirement accounts to the maximum allowed if you can afford to. These amounts are per person for tax year 2011.
- 401(k) type plans - $16,500 ($22,000 if you are over 50)
- IRA and Roth IRA plans - $5,000 ($6,000 if you are over 50)
- Simple IRA - $11,500 ($14,000 if you are over 50)
- SEP IRA and Solo 401(k) - $49,000 ($54,500 for 401(k) if over 50)
We will end with these eight tips, but many other specific tax planning tools can be used to ensure you don't pay more taxes than you are required to. A trusted money manager and trusted accountant are both key to consistently maximize your funds and minimize your tax bill. For those of you that have both the time and interest to make this happen yourself, more power to you. Hopefully you will find some useful tips here to get you started. Invest well!