Your retirement will be one year closer in a few weeks so how can you plan your tax reductions strategies around that as well as protecting your 2024 (and beyond) earnings?
Here are five opportunities you may have overlooked:
⦁ If you have employees, establish your 2023 retirement plan before December 31 so you and your employees can make employee contributions for this year. If you are a sole proprietor or single member LLC with no employees, you can establish your solo 401(k) plan and make both your employer and employee elective deferral on your timely filed individual return (without extensions).
⦁ Claim up to $15,000 in tax credits by having your business create a retirement plan that covers you and your employees.
⦁ Claim the new 2023 small employer pension contribution tax credit (up to $3,500 per employee).
⦁ Claim up to $1,500 in tax credits by enabling the automatic contribution.
⦁ Convert to a Roth IRA. Your traditional IRA may have lost some of its value, meaning it will cost you less in taxes to convert to a Roth. You can withdraw the monies you put into your Roth IRA (the contributions) at any time, both taxfree and penalty-free, because you invested previously taxed money into the Roth account.
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