The Holiday Season, That Other Tax Time

With the holiday season in full swing, most small business owners find themselves focused on year-end sales and the outlook for 2015, while attempting to take well-deserved vacations and reconnect with family and friends.

Unfortunately, in the middle of the holiday craze, many business owners often overlook important tax and retirement-planning tasks that can have a significant impact on retirement savings — not to mention their tax bill next spring.

According to the IRS, Americans will require as much as 80 percent of their annual income to retire comfortably in their golden years.

This holiday season, don’t forget to check a few important items off your tax and retirement planning list that could help you reach your retirement goals and maximize your company’s bottom line.

1. Catch up on your 401(k) or IRA contributions.

As you think about presents you’ll bestow this year, take advantage of the gifts the IRS can provide, namely opportunities to contribute to an individual retirement account or 401(k) while deferring taxes.

Every year, the IRS sets new limits on retirement savings account contributions. But if you’re 50 or older, you can also make catch-up contributions. This is a gift from the government to help ensure that those approaching retirement age are as prepared as possible.

If you have a 401(k) and are 50 or older, you can contribute as an individual an additional $5,500 to your account or $23,000 in 2014. The limit will rise to $24,000 in 2015. If you’re younger than 50, you can contribute $17,500 on a tax-deferred basis to a 401(k) in 2014 and $18,000 in 2015.

About the Author

How can you know what you should do if you don’t know what you can do? Author, radio personality, educator and financial planning pioneer Stephen Kelley shares his secrets to More Now, More Later™ retirement income planning. Most planners regard income planning as a “zero‐sum game,” a “Rob Peter to pay Paul” exercise. In these self‐serving, Wall Street‐dictated scenarios, people must limit the amount of income they receive to ensure they don’t run out of money in retirement. But there is an alternative to this “less now, more later,” or “more now, less later” mentality. Using state‐of‐the‐art income planning techniques, and his own trademarked “Last Things First™” planning process, Stephen Kelley blows the lid off the traditional Wall Street‐serving methods and brings retirement planning home to the individual retiree. In his books you will learn how to: - Unleash as much as 3 times the lifetime income using half the money with Kelley’s trademarked planning process, Last Things First™ - Ensure your Social Security benefits enhance, rather than impede, your plan. - Reduce, or even remove, taxes and fees from your retirement plan. - Maximize market returns while minimizing market risk. - Regain control of your pension so you not only get all the income you can, but so you can also leave it to your heirs. - Take control of the planning process so you can spend freely without worry. - Much, much more.

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