Potential tax saving strategies

News
The Means Report: Potential Tax Saving Strategies graphic
The Means Report: Potential Tax Saving Strategies graphic

Augusta, GA — Jeff Fehrman, president of the Fehrman Investment Group, is breaking down potential tax savings strategies in two areas — savings for 2016 and ideas to help save on takes in 2017.

Since it is past year end,  you have fewer ways to save for last year’s taxes. If you are eligible you can still make a contribution of up to $5,500 if you are under 50 or $6,500 if you are over age 50 to an IRA.  If you are self-employed you might be eligible to make a SEP-IRA contribution of 25% of compensation up to $54,000.

If you want to start potential tax savings for 2017 you will have more options.  Obviously the IRA and SEP might be an option for you in 2017, but if your employer offers a plan you should be able to maximize your payroll contributions in 2017 in an employer sponsored qualified plan.  The Roth IRA might be a good fit if you would like to have potential future benefits of tax free income for retirement.  If you are self-employed, you might consider a SIMPLE-IRA or Solo 401k.

You may also want to consider a High Deductible health care plan and HSA contribution to save for healthcare pre-tax.  If you have after tax brokerage accounts you might consider selling or exchanging investments for a tax loss in 2017.  You may also want to consider a donation of stock if you have assets that have a low cost basis and you are charitably inclined.

Please remember Fehrman Investment Group are not tax advisors and we highly recommend discussing potential tax savings strategies with your CPA or other tax professional.

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Trending Stories

Brad Means

The Means Report first aired in January of 2009 offering coverage that you cannot get from a daily newscast. Forget about quick soundbytes -- we deliver an in-depth perspective on the biggest stories. If they are making news on the local or national level, you will find them on the set of The Means Report. Hosted by WJBF NewsChannel 6 anchor, Brad Means, The Means Report covers the topics impacting your life, your town, your state, and your future.

Trending Stories