As the end of the year gets closer, it’s time to start seriously thinking about your taxes—and that means it’s also time to think about your medical plan and your retirement account. A little preparation now can pay off in the long run! Here are some important steps you can take that will help you when tax time rolls around.
- Don’t put off starting your retirement plan! Ideally, you should have the plan in place and should have started making contributions before the last day of the year.
- Convert your current plan to a Roth IRA, which usually means the most rewarding dividends. For the best results, leave your IRA alone for five years or more.
- If you are providing your employees with a health insurance plan, you may be eligible for as much as a 50% tax credit for any funds you use for this plan. Be sure to check!
- Are you reimbursing your employees for medical expenses through a Section 105 plan? If you get on a monthly schedule, you may be able to claim deductions.
- Do you run your business as an S corporation? If you want to be able to claim the total cost of your health insurance plan as a tax deduction, make sure that you are paid for the plan and that you have put it on your W2 before the end of the year.
- Do you have a qualified small employer health reimbursement account (QSEHRA) at your company? If not, putting one together now could spare you from paying out penalties in the future.
When it’s time to start thinking about your taxes, it’s time to schedule an appointment with The Royce CPA Firm. We are passionate about putting our knowledge and experience to work for you. If you’re looking for a qualified tax preparer in Tucson, contact us today!