Consider these strategies that may reduce your tax liability, build your retirement funds, and help you do good for others.

Max Out Retirement Contributions

If you're not at the contribution limit in your workplace retirement plan, consider increasing your contributions between now and the end of the year. It's good for your retirement savings strategy and helps lower your taxable income. You can contribute thousands toward your future in a tax-advantaged plan like a 457(b), 401(a), 401(k), or 403(b) plan. Savers who are age 50 or older can save even more. And those aged 60 to 63 have a higher catch-up contribution limit. Learn more about the limits and the amount you can contribute.

Make a Charitable Donation

You can give money or donate appreciated securities to your favorite charity and get a tax deduction. Generally, deductions for cash contributions are limited to 60% of your adjusted gross income. And typically, donations of $250 or more require a written statement from the charity. For smaller contributions, be sure to keep bank records or receipts.

Donate Non-Cash Items

For non-cash donations like clothing, household goods, or vehicles, the deductible amount is generally the fair market value of the items at the time of donation. You’ll need to file Form 8283 and keep your documentation, including receipts for non-cash contributions over $500. Special rules apply for non-cash donations exceeding $5,000.

Deduct Medical Expenses

You generally can deduct unreimbursed medical expenses that exceed 7.5% of your adjusted gross income if you itemize. That may seem like a high threshold, but the list of qualified expenses is extensive, from doctor visits and prescription drugs to hearing aids and premiums for health and long-term care insurance. (See IRS Publication 502.)

Depending on the time of year, if your expenses are just under the deduction threshold, you could still have time for a trip to the dentist or an annual physical to put you over the top.

Remember RMDs

If you're among those investors who must take withdrawals from traditional IRAs and tax-sheltered retirement accounts, remember to do so by year end. Failing to take your RMD will trigger a 25% penalty on the amount you should have withdrawn. Learn more about RMDs.

It's never too soon to consider steps you can take to save on your tax bill during the year. Now is a great time to start planning.

Disclosures

^{MissionSquare does not offer specific tax or legal advice. Please consult with your personal advisor for additional assistance prior to implementing any new tax or legal strategy.}

^{This content provided by MissionSquare includes general information regarding your retirement benefits. It is not intended to provide you with or substitute for specific legal, tax, or investment advice. You may want to consult with your legal, tax, or investment advisor to review your own personal situation. Some of the products, services, or funds discussed herein may not be available in your plan. This document may contain information obtained from outside sources, and it may reference external websites. MissionSquare is not responsible for external website content. While we believe this information to be reliable, we cannot guarantee its complete accuracy. In addition, rules and laws can change frequently.}