Tax Planning Strategies to Consider Before 2022

As the year end approaches, we wanted to share with you important tax strategies to consider, which may help you save on your taxes–now and in the future.

Watch this video for a quick summary of the year-end tax tips.

End of Year Tax Planning Tips 2021.MOV

Here are the year-end tax planning tips to consider:

1. Potential benefits of converting to a Roth IRA

Unlike a Traditional IRA, a Roth IRA’s contributions and earnings can grow tax-free. With tax rates being at all-time lows, converting to a Roth may be a tax-smart move in the long run.

2. Turn losses into potential tax savings

If you have assets that have lost value and you decide to sell them before 2022, you may be able to use those capital losses to offset taxable capital gains.

3. Rebalance your portfolio for the New Year

Market swings can cause investment allocations to shift. To review your risk level and portfolio with an advisor, click here to schedule a phone call.

4. Explore the tax advantages of a 529 education savings plan

Potential future tax benefits await you when you open and contribute to a 529 education savings plan before 2022. Talk to an advisor about the different investment options and learn more about 529 plans.

5. Give to a charity with a tax-smart donation

The remainder of 2021 may offer a favorable giving environment. To learn more about maximizing your charitable giving impact, and to explore timely, tax-efficient giving strategies, talk to an advisor today.

These potentially tax-saving strategies must be completed by year’s end. If you have any questions about how these strategies may apply to you or how you can implement these strategies by December 31st, please click here to schedule a 30-minute call with an advisor to discuss your unique situation.

This material is intended to provide general information and should not be construed as financial, tax or legal advice, or used as the sole basis for financial decisions. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals are highly encouraged to consult with a qualified professional before making any decisions about their personal situation. Investing involves risk, including the potential loss of principal. Investment advice is offered through Strategy Financial Services, LLC, a Registered Investment Adviser. Insurance products are offered separately through Strategy Financial Insurance, LLC.