Before 2019 winds down, you may want to consider some investment moves that could help when you file your taxes next year.
For starters, you might add to your 401(k), if your employer permits it. The more pre-tax dollars you put in, the lower your taxable income. Also, consider putting more money into your IRA. With a traditional IRA, your contributions may be fully deductible, depending on your income.
Here’s one more idea: If you itemize on your taxes, think about making gifts to charitable groups. If you donate investments that have gained value since you purchased them, you will generally be able to deduct the fair market value of the investment, and you can avoid paying capital gains taxes on the appreciation.
See your tax advisor and financial professional before making any of these moves. But if they make sense for you, put them to work—they could pay off when next April’s tax deadline rolls around.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisors, Brent D. Hoskinson and Linda Drake.