{"id":21581,"date":"2024-03-23T01:07:53","date_gmt":"2024-03-23T01:07:53","guid":{"rendered":"https:\/\/www.thinkadvisor.com\/2024\/03\/22\/3-ways-to-help-clients-minimize-2023-tax-liability-now\/"},"modified":"2024-03-23T01:07:53","modified_gmt":"2024-03-23T01:07:53","slug":"3-ways-to-help-clients-minimize-2023-tax-liability-now","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2024\/03\/23\/3-ways-to-help-clients-minimize-2023-tax-liability-now\/","title":{"rendered":"3 Ways to Help Clients Minimize 2023 Tax Liability Now"},"content":{"rendered":"<div class=\"media_block\"><a href=\"https:\/\/feeds.feedblitz.com\/-\/874184822\/0\/thinkadvisor\/\"><img decoding=\"async\" src=\"https:\/\/images.thinkadvisor.com\/contrib\/content\/uploads\/sites\/415\/2021\/03\/Tax_Form_1040_Calculator_Shutter_640x640.jpg\" class=\"media_thumbnail\"><\/a><\/div>\n<div><img decoding=\"async\" src=\"https:\/\/images.thinkadvisor.com\/contrib\/content\/uploads\/sites\/415\/2021\/03\/Tax_Form_1040_Calculator_Shutter_640x640.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<div class=\"the-advisor bullet-summary\">\n<h3>What You Need to Know<\/h3>\n<ul>\n<li>Employee clients can add to retirement accounts.<\/li>\n<li>They may be able to add to health accounts.<\/li>\n<li>Business owners have a third, great option.<\/li>\n<\/ul>\n<\/div>\n<p id=\"first-para\">Do you ever have a d\u00e9j\u00e0 vu feeling? Like you\u2019ve done this very thing before?<\/p>\n<p>For me, it happens every year when I prepare my taxes. I start going through everything and determine what I owe the federal government in taxes.<\/p>\n<p>As I complete this process, I think to myself, are there strategies that would help me maximize my tax efficiency? But what can I do now?<\/p>\n<p>Once the calendar year turns over, there is very little clients can do to increase their deductions and lower their tax bills.<\/p>\n<p>They can contribute 2023 payroll income to a SIMPLE or 401(k). Still, that option is based on 2023 payroll taxes and is primarily gone after the end of January. So, what options are there?<\/p>\n<p>There are a few, and they are limited.<\/p>\n<p>Of course, as always: You should understand all of the options, and you should consult with your own compliance advisors about whether and how to talk about the options with clients.<\/p>\n<h2>1. Traditional IRAs<\/h2>\n<p>If a client hasn\u2019t reached the maximum annual contribution, they can contribute to a traditional IRA.<\/p>\n<p>They can make a prior year contribution up to April 15.<\/p>\n<p>The IRA contribution is an above-the-line deduction, and it\u2019s important to understand that a contribution to an IRA can sometimes mean that it will not result in a tax deduction.<\/p>\n<p>The IRS has rules to determine if an IRA contribution is deductible.<\/p>\n<p>The requirements can be found on the <a href=\"https:\/\/www.irs.gov\/retirement-plans\/traditional-iras\" target=\"_blank\" rel=\"noopener\">IRS website<\/a>.<\/p>\n<p>The ability to deduct depends on whether your client or their spouse is eligible for a retirement plan at work.<\/p>\n<p>If so, the IRS looks at the adjusted gross income to determine if the IRA contribution is deductible.<\/p>\n<h2>2. Health Savings Accounts (HSAs)<\/h2>\n<p>Another option is to contribute to a <a href=\"https:\/\/www.irs.gov\/irb\/2019-22_IRB#REV-PROC-2019-25\" target=\"_blank\" rel=\"noopener\">health savings account<\/a>.<\/p>\n<p>The HSA contribution deadline is also April 15.<\/p>\n<p>If your client has a high deductible health plan, they can contribute the total amount to the health savings account by April 15.<\/p>\n<p>The maximum contribution for an individual is $3,850. For a family, it\u2019s $7,750.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What You Need to Know Employee clients can add to retirement accounts. They may be able to add to health accounts. Business owners have a third, great option. Do you ever have a d\u00e9j\u00e0&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":21582,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[1],"jetpack_featured_media_url":"https:\/\/blog.lifeinsurance-orleans.ca\/wp-content\/uploads\/2024\/03\/3-ways-to-help-clients-minimize-2023-tax-liability-now.jpg","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/21581"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=21581"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/21581\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media\/21582"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=21581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=21581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=21581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}