Deductions Still Available For 2012

Jan. 2, 2013 - PRLog -- There is good news there is still a way to make a deduction for the previous year. The most sensible, legal tax-saving move for anyone that wants deductions for last year is to to fully fund one’s  IRA or SEP.

The funding can be postponed until the due date of the return, so there isn’t a panic to fund those right now.

What is an IRA?

IRA stands for Individual Retirement Account, and it's basically a savings account with big tax breaks, making it an ideal way to sock away cash for your retirement. A lot of people mistakenly think an IRA itself is an investment - but it's just the basket in which you keep stocks, bonds, mutual funds and other assets.

What is a SEP?

A SEP is a simplified employee pension plan. A SEP plan provides a way for the self-employed to fund their own retirement.

Frequently a client with a second business will ask, "If I am an employee and participate in my employer's retirement plan, can I set up a SEP for self-employment income?

Yes. A SEP can be set up for a person’s business even if he or she participates in another employer's retirement plan.

We are here to accommodate clients with good service that is convenient, and priced fairly. Our office is here to answer any tax questions that you need help with.