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4 key year-end moves to ‘control your tax reporting destiny’


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1. Boost your 401(k) contributions

2. Take your required minimum distributions

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3. Plan ahead for qualified charitable distributions

Here's how to get the most value out of your charitable giving

The QCD doesn’t count as taxable income, unlike regular IRA withdrawals, so it’s “really, really beneficial for people that do not itemize [tax deductions],” Loyd explained.

Since few Americans itemize deductions, it’s harder to claim a tax break for charitable gifts. But retirees taking the standard deduction may benefit from a QCD because it’s not part of their adjusted gross income, he said.

However, you’ll need enough time to send the money from your IRA to the charity, and confirm the check has been cashed before the end of the year, Loyd said. 

4. Time Roth IRA conversions with transfers to a donor-advised fund

The Roth conversion, which transfers pre-tax IRA funds to a Roth IRA for future tax-free growth, is attractive when the stock market drops because you can buy more shares for the same dollar amount, he said. 

Although you’ll trigger taxes on the converted amount, it’s possible to offset your liability with the deduction from your donor-advised fund contribution,” Guarino said.

“It’s a great one-two punch to be able to time both of those events in the same year,” he added.

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