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Don't look now, but the end of 2006 is less than three month away! Are you ready? Aside from brushing up on "Auld
Lang Syne," planning the Kwanzaa celebration, unearthing the figgy pudding recipe, and purchasing expensive presents for your favorite CPA,* you ought to plan for how to lower your
2006 tax bill.
Here are a few tips that can make a big difference:
- Contribute to your 401(k). Individuals under 50 can contribute up to $15,000 this year; those over 50 can contribute up to $20,000.
- Put away more in your IRA. Folks under 50 can put away up to $4,000, while those 50 or older can contribute up to $5,000.
- Give lots of money to a good cause. Individuals aged 70.5 or older can give away as much as $100,000 from their IRA directly to qualified charities without triggering federal income taxes.
We'll share more ideas in the next newsletter!
*Please…no more pocket protectors.
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