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I can honestly say that I’ve never
met a client who wanted to pay
more taxes than legally required
of them. Actually, not many
enjoy the idea of paying taxes at
all but, it does cost money to live
in a society with paved roads,
public schools, social programs
and the other gazillion ways
Congress spends our tax dollars.
So, what strategies can you
employ to make sure that price
tag is the least amount?
First,
make
sure
you’re
maximizing all of the pre-
tax opportunities offered by
your employer. These include
contributions to tax deferred
retirement plans such as 401ks
or 403bs, SEP or SIMPLE IRA
plans and a host of other types
of retirement plans. Setting
aside money tax free is great
but saving money for retirement
is the icing on the cake. As a
side note, seek the advice of a
qualified investment advisor
because setting aside money
tax deferred is not always the
best option for your specific
objectives.
I also recommend maximizing
your contributions to your HSA
plans or flex plans, which allow
you to pay for out of pocket
qualifying medical expenses with
pre-tax earnings. This is a great
tax saver because it also allows
you to save both income and
social security tax on the money
which is like saving 20 – 30% or
more compared with spending
after-tax money on your medical
expenses. This strategy is not
only a great way to save taxes but
also helps reduce the cost of your
medical care. Double bonus!
By Tina Moe, CPA
Tax Savings
Strategies
For 2016
SOAR TO SUCCESS
/
N
ovember
2016
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Core Business Strategy