Tax Planning Tips for Retirement Savings:

• Aim to max out your 401K with $23,500 of payroll deductions ($31,000 at age 50). Although a traditional 401k will lower your taxable income today, a Roth plan will allow your investments to grow tax free for life! You should determine if it is personally worth it for you to pay taxes on the contributions today (Using a Roth 401k) in order to let that money grow tax free for life.

• A back-door Roth IRA contribution is another option to investigate with your financial advisor since you may/may not be eligible.

Tax Planning Tips for Medical Savings Accounts:

• Always consider maxing out your HSA plan contributions ($8,550) if you have an eligible plan with your employer. This allows you to pay for medical costs with pre-tax money.

• Another tip is to consider investing the HSA contributions with your HSA company and allowing it to grow tax free, instead of spending it this year. This again would be a personal decision in order to have tax free investment growth in the future.

Tax Planning Tips for Donations:

Donations: The IRS has strict rules regarding tax deductions for donations. Receipts must be retained for all donations whether by cash, check, credit card or giving of goods.

• Ensure the organization is a Qualified Charitable Organization
• Receive and retain your receipt
• Be cautious in valuing your donation as fair market value may be less than you believe
• You cannot deduct contributions made to specific individuals, political organizations and candidates
• You cannot deduct the value of your time or services and the cost of raffles or games of chance.
• You may be able to deduct the mileage incurred on behalf of one of these organizations