Are you thinking about how to handle your retirement accounts and medical coverage/plans from a tax perspective?
You should be concerned about these issues because December 31 is almost here and if you take action before that date, you could save yourself a lot of money.
We’ll show you proven, totally legal techniques you can use right now (before time runs out) when you read my new article titled Tax Tips: 2019 Last-Minute Year-End Medical and Retirement Deductions.
Six money-saving tax strategies
you can use if you act on before December 31.
Strategy #1: Establish your 2019 retirement plan before the end of this year. In fact, be sure to make a contribution to your plan before then. All will be explained in detail when you read the full article.
Strategy #2: Convert to a Roth IRA. The long-term savings here can be huge. Make sure to leave the converted funds in your Roth for at least five years. You’ll get the whole story when you read the full article.
Strategy #3: Reimburse your 2019 Section 105 or other health reimbursement account (HRA) medical expenses right now. If you have a Section 105 plan in place, and you haven’t been reimbursing expenses monthly, do a reimbursement now to get your 2019 deductions. Then put yourself on a monthly reimbursement schedule in 2020. Don’t miss the information we’ve got waiting for you when you read the full article.
Strategy #4: Implement a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) or an Individual Coverage Health Reimbursement Arrangement (ICHRA. If you haven’t yet put a QSEHRA in place and you plan to do so on January 1, do that right now and just expose yourself to that possible $50-per-employee penalty. Alternately, consider implementing an ICHRA in 2020. You’ll get all the facts when you read the full article.
Strategy #5: Ensure that you take your S corporation health insurance deduction correctly. Do you operate your business as an S corporation and want an above-the-line tax deduction to cover the cost of your health insurance? Then you need the S corporation to (a) pay for or reimburse you for the health insurance and (b) put it on your W-2. Make sure that the reimbursement happens before December 31 and that you have the reimbursement set up to show on the W-2. We’ll make this all crystal clear when you read the full article.
Strategy #6: Claim the tax credit for the health insurance you give your employees. If you provide your employees with group health insurance, see whether your pay-structure and your number of employees put you in a position to claim a 50% tax credit. We’ll fill you in on all the details when you read the full article.