I outline the top three year-end tax planning strategies that can benefit you this fall. I emphasize the importance of assessing your tax situation as the year draws to a close, highlighting that by this time, you typically have a clearer picture of your income and taxes due to bonuses and other financial events. The first strategy I discuss is Roth conversions, which can be advantageous in years of lower income, allowing you to pay taxes on the converted amounts now rather than later. The second strategy focuses on charitable contribution planning, particularly through donor-advised funds (DAFs) and using required minimum distributions (RMDs) to donate directly to charity, maximizing tax benefits while avoiding capital gains taxes. Finally, I touch on retirement account contributions, stressing how contributions to traditional accounts can lower your taxable income, especially if you’re a business owner. Overall, I provide practical advice for you to optimize your tax situation as the year ends.

Key Takeaways:

• Converting traditional pre-tax money to Roth accounts can be beneficial in low-income years, allowing you to pay taxes now rather than later.

• Having a mix of traditional and Roth accounts is important for tax management in retirement, providing flexibility in withdrawals.

• Donor-advised funds (DAFs) are a powerful tool for charitable giving, allowing for immediate tax deductions and avoiding capital gains taxes on appreciated stock.

• Individuals subject to required minimum distributions (RMDs) can donate their RMDs directly to charity to avoid increasing their taxable income.

• High-income earners can use backdoor Roth contributions to get money into Roth IRAs despite income limits.

• Implementing these strategies can result in significant tax savings, sometimes amounting to thousands of dollars in reduced taxable income.

Key Timestamps:

(00:00) - 3 Fall Tax Planning Moves for Veteran Business Owners

(01:25) - Understanding Roth Conversions

(02:52) - Benefits of Roth Conversions in Retirement

(04:05) - Charitable Contribution Planning

(04:45) - Utilizing Donor Advised Funds

(05:40) - Tax Benefits of Donor-Advised Funds

(06:48) - Required Minimum Distributions to Charity

(07:48) - Maximizing Retirement Account Contributions

(09:45) - Roth Conversions and Charitable Deduction Planning

(10:56) - End-of-Year Tax Strategies Recap

(11:31) - Closing Remarks and Resources

Key Topics Discussed:

BLUF Veteran Finance Podcast, Military Finance, Veteran Financial Planning, Military Money Management, VA Benefits, Military Retirement Planning, Financial Literacy for Soldiers, Military Budgeting Tips, Debt Management for Service Members, VA Loans, Military Investment Strategies, Saving for Deployment, Thrift Savings Plan (TSP), Transitioning to Civilian Life, Military Tax Benefits, Financial Independence for Veterans, Military Money Manual, The Military Money Show, DAFs, RMDs

More of Baskin Financial Planning:

Download the Ultimate Military Finance Checklist⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠, with 7 pages of critical things to be thinking about to clarify your journey to financial freedom.

Think you might need some financial help? ⁠⁠⁠⁠⁠Book an intro call with me to see if we would be a mutual fit.

Questions or comments, drop me a note at: erik@baskinfp.com

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