Posted on November 03, 2005 at 16:54:14:
It’s not too soon to start the end-of-the-year planning that trims taxable income (and therefore taxes), that maximizes retirement savings and take advantage of every tax break you can find.
Investors, harvest your losses by balancing them against gains. If you take this opportunity to rebalance your portfolio, it may be more helpful to take gains in tax-advantaged accounts.
Put as much as you can into retirement accounts. Remember that those who turn 50 this year can make catch-up contributions. If you are self-employed, remember that a Keogh must be opened up by December 31. Do you fund 529 accounts for children or grandchildren? Some states offer tax deductions on pay-ins, which usually must be in by the end of the year.
Have you used up everything in your flexible spending account? This year, the IRS is allowing an extra two and a half months to use up the funds—but don’t forget to.