2021 is coming to an end! It’s time to plan tax strategies to reduce tax obligations. Here are a few strategies to consider:
#1 Beef up your retirement
One way to lower your taxes is to make more contributions to a 401(k), 403(b), or IRA. 401(k) & 403(b) contributions have a Dec. 31 deadline for contributions, while IRAs allow for contributions until April 18, 2022. The IRA deadline gives investors extra time to contribute to their account.
#2 Convert your IRA into a self-directed Roth IRA
Not all IRAs are the same! In a standard Roth IRA, investors are typically boxed into traditional investments like stocks, bonds and mutual funds. While the stock market selloff had many traditional investors shedding a tear on their dimming portfolios, savvy investors have used alternative investments to diversify. The self-directed Roth IRA opens up the investment landscape to alternatives such as real estate, precious metals, and cryptocurrency. Alternative investments allow investors to take advantage of high-yield fixed income returns in addition to the tax-free benefits!
The self-directed Roth IRA has been a long-time secret of the ultra-wealthy. At the Family Business Fund, investors enjoy a 15% consistent return. Investing in a fixed rate of return lowers the volatility of your portfolio when the market is going crazy. The Fund is designed with the intention of generating passive income immediately and creating financial independence. Don’t put all of your hard-earned money in a volatile stock market!
#3 It’s giving season!
This year taxpayers have the ability to take a $300 deduction for a single filing or $600 for joint filings for qualified charitable contributions. This will reduce your adjusted gross income and taxable income which reduces the federal income tax amount.
For more information contact Douglas Muir at firstname.lastname@example.org or call (888)884-6442 ext. 3