As 2016 comes to a close you have a few days to make the most of your financial profile for the New Year. In order to boost your financial planning for 2017, consider these year-end financial strategies steps to wrap up with the most benefit.
Year-End Financial Strategies
Donating To Charity
Donating money or items to a charity is a great way to, not only help the community, but to reduce your tax liability for this year. Lowering your tax liability saves you money on what you owe the IRS and will (a) lower what you pay to the IRS, if you owe or (b) increase what you get back from the IRS, if you receive a refund. Giving cash to churches, universities or registered charities can offset your income by 50%, and giving gifts of stock or appreciated assets by 30%. In order to do the most good with your donation, be sure to find a top rated charity.
Boost 401(k) Contributions
Most people don’t max out their contributions to their 401(k) simply because they don’t want the extra taken out of their take home pay. However, changing your last paycheck to increase the amount paid in by yourself and your employer, will lower your tax liability. You must act quickly to take advantage of these contributions. Deadlines are December 31st for employer accounts and April 15th, 2017 to allow for contributions on individual retirement accounts to be applied.
Utilize Health Insurance Benefits
If you have a Health Savings Account (HSA), or Flexible Spending Account (FSA), with remaining funds, use those before December 31st to avoid losing the money. Most of these accounts roll over January 1st. If you have met your deductible for the year, take advantage by seeking any medical care you have been putting off due to cost. Whether you get an annual check-up or schedule a preventative care screening, utilize that after deductible cost share the health insurance carrier offers.