ATLANTA - The end of the year can be so expensive. Holidays. Travel. Dinners. End-of-year costs add up, so let’s save you a little money in the final days of 2021.
Here are a few ways to save for the future and save on that 2021 tax bill. Let’s talk about college tuition. If you have Georgia’s 529 savings accounts for the kids, put more money in those accounts if you can. Joint filers can deduct up to $8,000 per account, $4,000 for other filers.
The year, with its uncertainty, might mean you didn’t give to charity the way you have in the past. If you still mean to give, Kentucky could sure use your help. Nearly 100 people are dead. Homes, businesses, and towns have been decimated.
In addition to giving and filling up the school kitty, treat your own 401k to a little extra. There’s still for many a paycheck left this year. If you can, put some of that into your 401k. You can put away up to $19,500. If you’re over 50, that can go as high as $26,000. Yes, that’s for retirement, but it saves on that tax bill that’s fast approaching.
Here’s one more thing to consider that can be costly if you don’t get it right. If you’re over the age of 72, you might be required to take money out of your IRA. We checked in with money manager Bud Boland of Brightworth on this.
"In year’s past, like last year, required minimum distributions were not required, but those are back on the table this year," Boland said. "So people that are over the age of 72, need to make sure they’re taking the required amount out of their retirement accounts, so they’re not stuck with a penalty by the IRS for failing to do so."
So just a few things to do that serve multiple purposes - pad retirement, lower your tax bill.