Following is a guest post by Chip Hais, Financial Advisor at Queen City Financial Services. Greater Harrison Chamber members are invited to share their expertise. Contact the Chamber to learn more.
As the year draws to a close, it’s crucial for business owners to take advantage of impactful tax and financial planning moves. Here are some strategies to consider before the end of the year.
Queen City Financial Advisors LLC, is a full service financial planning firm located in Cincinnati. Many of our advisors have been helping successful individuals, teachers, medical professionals and their families work toward their goals for over 25 years. Our firm has a wealth management focus with an emphasis on college, retirement and estate planning. We design a plan that fits your needs. We recognize that as our clients’ needs change, so do their goals, objectives and dreams. We try to develop a close relationship with you in order to help create a plan that is flexible enough to meet and change with you as your needs change.
Maximize Your 401(k) and Other Contributions Before the Year End
- Max Out Your 401(k), Solo 401(k), etc. on the Employee Side: Contribute the maximum amount to your retirement accounts to reduce taxable income and increase your retirement savings.
- Max Out Your 401(k), Solo 401(k), SEP IRA, etc. on the Employer/Profit Sharing Side: Take advantage of employer contributions to further reduce your taxable income and add to your yearly investing.
- Max Out Roth IRA/Backdoor Roth IRA: Contribute to a Roth IRA directly or via a backdoor method to get more tax free dollars invested.
- Max Out Your HSA if Possible: Contribute to a Health Savings Account (HSA) for triple tax benefits: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. Let it grow if you can.
- Max Out 529 to the State Tax Benefit: Contribute to a 529 plan to take advantage of state tax benefits and save for future education expenses for your kids.
Review and Evaluate Your Business For Maximum Tax Benefit
Evaluate Entity Structure for 2024
Review your business entity structure to ensure it aligns with where your business is going.
Review Books and Ensure Everything is Correct
Conduct a review of your financial records to ensure accuracy and compliance, avoiding potential issues during tax season.
More Moves for Smart Tax Planning
Defer/Accelerate Income
Strategically defer or accelerate income to optimize your tax bracket for the current year.
Accelerate Certain Expenses
Prepay expenses to increase your deductions for the current year, reducing taxable income. But don’t just spend to spend.
Use Dependent Care FSA Funds
Utilize your Dependent Care Flexible Spending Account (FSA) funds to cover eligible expenses and reduce taxable income.
Use the Annual Gifting Limit
Utilize the annual gifting limit to transfer money to family members, reducing your taxable estate.
Tax Loss Harvesting
Sell losing investments to offset capital gains and reduce your taxable income. The end of the year is a great time to speed this up.
Tax Gain Harvesting
Sell investments at a gain o take advantage of lower tax brackets, potentially paying less in taxes.
Roth Conversions
Convert traditional IRA funds to a Roth IRA to maximize lower tax brackets or the current bracket you are in, benefiting from tax-free growth. This can be a great move for many in the first few years of starting a business.
Review Withholding and Estimated Taxes
Ensure you’ve withheld enough from your paycheck or saved enough from business profits to cover your tax liability. Then make the change for next year.
Donate Cash to Charity
Make charitable donations to reduce taxable income. Consider bunching donations or using a donor-advised fund for greater tax benefits.
Click here for a printer-friendly version of these tips, courtesy of Queen City Financial Services.
Securities and investment advisory services offered through Osaic Wealth, Inc. member FINRA/SIPC. Additional advisory services offered through Queen City Financial Advisors. Osaic Wealth is separately owned and other entities and/or marketing names, products or services referenced here are independent of Osaic Wealth. Osaic Wealth does not provide tax advice.
About Chip Hais, Financial Advisor at Queen City Financial Services
Chip Hais graduated from the University of Cincinnati where he earned a bachelor’s degree in business, Operations Management. After college Chip spent eight years working in Automotive Manufacturing in different Project Management roles. Since joining Queen City Financial Advisors and “Team Hais” in 2022, Chip has worked alongside the other members of the management team learning all aspects of the business while gaining experience in the financial services field. His background in operations management and production efficiency provides Chip with a fresh and different perspective from the rest of the team, making him an invaluable resource in running an efficient family business and branch. Chip has his Series 7, Series 63, Series 65, Life Insurance License as well as Health and Disability Insurance Licenses. The knowledge gained through these licenses enables Chip to support his clients and enables him to be a valuable resource to them as their advisor.
Chip and his wife Emily, moved to Harrison in the Spring of 2020, and have enjoyed calling Harrison home and watching the city grow with all of the new businesses.