Thursday, December 19, 2012
Today in Money Matters
The year is rapidly coming to a close. That means it's time to sit ant the kitchen table and do a few things with an eye towards your taxes and retirement planning. Joe Udo From US News and World Report has some Suggestions
1.Check Your 401K Contributions: If you haven't maxed out your 401K Contributions yet, there is still time. If you contribute before the end of the year. You'll pay less in taxes.
2. Contribute an IRA: Contributing to a traditional IRA will reduce your tax bill next year. Contributing to a Roth IRA mean you'll pay the tax now and not have to worry about paying taxes in your retirement years.
3. If you have kids, don't forget a 529: Any gain in a 529 college savings account can be withdrawn tax free for higher education costs. The contribution can also be deducted on your state taxes.
4. Make a charitable donation: Some charities accept stocks. You can donate some stock winners to charity and avoid a capital gains tax. The charity can then sell the stocks and receive the full amount.