Tax Planning Tips

1. Are you self employed? If so, it’s not too late to set up and make significant contributions (perhaps as high as $45,000 depending on amount of self employment earnings) to a retirement plan attributable to the 2007 calendar year.
2. Will you be turning age 70 during 2008? If so, you will generally need to begin withdrawing amounts from your retirement plans no later than April 1, 2009. However, you may be able to save taxes by taking out your first distribution prior to January 1, 2009.
3. It’s never too early to begin saving for your child’s college education. There are several different tax deferred investment options that may help you. These options include: 529 Plans, Education IRA’s, and maximizing your traditional or Roth IRA’s.

For more detailed information about any of the above tax tips, please contact your SKM tax professionals at 401-331-0500.