- Set aside time to plan- did your financial or family situation change this year? Had a baby, divorced, started a new job, retired, started a business or side gig? These are just a few examples of things that may have changed, and you may need someone to review your situation with you.
- Defer income to next year – year end bonus, payment for services, collection of business debts? Postpone to 2025 and avoid the extra income this year.
- Increase withholding – just a reminder to review your W4 with your employer to make sure you are having enough federal tax withholdings.
- Take any required minimum distributions- if you are age 73 or older, you generally have a required minimum distribution (RMD) from any traditional IRAs
and employer-sponsored retirement plans.
- Save more for retirement- deductible contributions to traditional IRAs or pretax contributions to employer-sponsored retirement plans such as a 401(k) can reduce your taxable income for 2024. The window to make 2024 contributions to an employer-sponsored plan generally closes at the end of the calendar year, however IRAs you have until April 15, 2025.
If you have any questions or would like to discuss your tax planning situation with your local tax professionals at Meadville Tax Service, give us a call at 814-333-2488 or email us at info@meadvilletaxservice.com.
