SWARTZ RETSON & CO

November 15, 2013










Year-End Tax Cutting Suggestions for Individuals
It’s not too late to consider tax moves that could reduce your 2013 taxes and get you in a better
tax position for 2014.
• Be aware of higher tax rates. In 2013 the top tax rate has been increased to 39.6%
for top bracket taxpayers (with taxable income over $400,000 for singles, $450,000 for married
taxpayers). In addition, singles with income greater than $200,000 (or $250,000 for married
taxpayers) will be subject to the new 3.8% surtax on net investment income. If you believe that you
will be close to this limitation, consider making moves that will defer income into 2014.
• Take advantage of tax-deferred accounts. All of the new tax rates and phase-outs
are based upon adjusted gross income or taxable income. The most efficient way to reduce both of
those items is to maximize contributions to tax-deferred retirement plans. If your employer offers
such a plan, make maximum use of it (such as a deferred compensation plan). If not, see if you are
eligible for your own deductible IRA.
• Consider a health savings account (HSA). Investing in an HSA gives you a current-
year tax deduction, while providing a savings account to use to pay out-of-pocket medical expenses
currently or in the future. An HSA is not a “use it or lose it” plan. Any funds in the plan can be
used in future years. And be aware that you can fully fund your HSA up to April 15th of the
following year.
• Make charitable gifts from your IRA. Seniors age 70½ and older can make
charitable contributions directly from their IRA. While this won’t be deductible, it can apply
against your annual required minimum distribution (RMD), thereby lowering your adjusted gross
income.
For guidance with your year-end tax planning, contact our office.
Call us at (219) 769-3616 with your questions, or email them to tlynch@swartz-retson.com.