Schwab’s Year-End Moves to Reduce Your Taxes


Good advice from the nice folks at Charles Schwab online brokerage:

10 Year-End Moves to Reduce Your Taxes

1) Harvest your investment losses in taxable accounts by Dec. 31 to offset any capital gains;

2) Max out on contributions to your qualified employer retirement plan and IRA;

3) If you’re self-employed, open a business retirement account such as a SEP-IRA, SIMPLE IRA or qualified retirement account (QRP)/Keogh;

4) Open and contribute to a Roth IRA;

5) If you make quarterly estimated tax payments to your state, make your fourth-quarter payment by Dec. 31 instead of waiting until the New Year;

6) Prepay the second installment of your property tax by Dec. 31;

7) Make January’s mortgage payment in December;

8) Open and fund a 529 college savings account;

9) Donate appreciated securities you’ve held for more than one year to a qualified public charity;

10) Consider postponing the exercise of incentive stock options (ISOs) until January.

These are just the bullet points –each topic is given the full treatment at Schwab’s site. Check it out . . .


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