Maximize Your Savings: 5 Smart Tax Strategies for 2019

Tax season sneaking up on you? Read our complete guide to filing your income taxes.

As we near April 15th, taxes are top of mind for many of us. While 2018 has come and gone, there is plenty of time to make some tax-smart moves for this year.

Here are 5 smart tax moves to make in 2019:

1. Max out your retirement accounts.

If your cash flow allows, you should generally max out your contributions to retirement accounts in order to take advantage of their favorable tax status.

2. Evaluate Roth conversions.

A Roth IRA can offer significant benefits, including tax-free growth of assets, tax-free distributions and no required minimum distributions (RMDs) during the original account holder’s lifetime.

3. Gift meaningfully.

Donate appreciated assets for a double tax benefit: a charitable deduction and saving on capital gains taxes. Gifting RMDs to a qualified charity can also save you from paying income tax on distributions while helping satisfy the requirement for a minimum distribution.

4. Use 529 plans for education.

You can save for a beneficiary’s education while lowering your tax bill with a 529 plan. Some states even offer a state tax deduction or credit.

5. Maximize your tax deductions.

Every dollar counts when it comes to taxes, but with tax reform that passed in December 2017, some of this may have changed for you and your family. Check with a tax professional to learn more.