It’s December. Do you know where your Self-Directed IRA plan is?

If it’s in your head, it’s time to put it down on paper. And don’t delay, because there are a number of concrete things that you can do to better your position that you must do, before the end of the year, or you lose the opportunity forever.

• Max out your 401(k). If you don’t already have a 401(k), you won’t be able to start one for calendar year 2015. But if you have one already, try to stuff as much as you can in it. This reduces your income tax bill, come April 15^th.
• Take your RMDs. If you’re over age 70½, you must take them prior to the end of the year, or you may face a penalty of up to half of the amount the IRS calculates you were supposed to withdraw. You’ll have to pay income tax on the distribution. The deadline to begin taking distributions is April 1 of the year after the year in which you turn 70 ½. If you have questions, or need help figuring your RMD for the year, call us at 866-7500-IRA (472).
• Adjust your planned contribution levels for 2016, to reflect increases in allowable contributions or income limits. You may be able to contribute more to retirement plans than you could last this year.
• See your CPA. There may be some things you can do to mitigate any possible exposure to the alternative minimum tax.
• Top off your IRAs. Can you make more contributions? Go ahead and put them in. You still have until April 15^th, however, to make IRA contributions for this year. If you have to choose, contribute to your 401(k) plan and then take advantage of the longer IRA deadline to catch up.
• Do an age check. Did you turn 50 or older this year? You may be able make additional “catch up” contributions to retirement plans.
• Check your total contributions. Did you over contribute? Make the withdrawals while you still can to avoid over-contribution taxes.
• Can you make business purchases? Committing funds to business expenses may create a tax-deductible expense this year. If you can place capital equipment in service by the end of the year, you may be able to take a substantial deduction under Section 179 of the U.S Tax Code.
• Commit those last few dollars in flexible spending arrangements.
• Take a look at Roth IRA conversion strategies. Was your income unusually low this year? It may make sense to pay the income taxes on your IRA growth now, rather than wait until you make distributions and pay full-boat income tax at a possibly higher rate in retirement.
• Contribute to a Coverdell ESA for a loved one (you can self-direct with a Coverdell, too!)

At American IRA, LLC, we work with your current team of advisors to make sure you are getting the most out of your Self-Directed IRA investments. We also work hard to ensure your transactions are handled promptly, accurately and are in compliance with IRS regulations.

Call us today at 866-7500-IRA (472), or visit us online at www.americanira.com.

Image by: Presentermedia.com