Year-End Tax Moves That Could Save You Money

Once you reach 70-and-a-half years old, you have until April 1 of the following year to take your first required minimum distribution (RMDs) from a traditional IRA. You also must take distributions from other tax-advantaged retirement accounts, such as a 401(k) or 403(b), by April 1 following the year you retire or turn 70 and a half. From then on, you’ll have to pay a 50-percent excise tax on any funds that you were required to, but didn’t, withdraw.

Bottom line.
Don’t wait for the tax season to start to take stock of your situation and get your finances in order. While there are a few tax moves that you don’t need to complete until the end of March, what you do between now and the end of the year could have a significant impact on your return.

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