5 Tax Planning Tips for January – Finger Financial Five #117

“Before anything else, preparation is the key to success.” – Alexander Graham Bell

Tax planning, like a good diet, is a year-round activity. It is not a one-time thing.

Here are 5 tax planning tips to start your New Year off right:

  1. Review your withholding: Make sure the right amount of taxes are being withheld from your paycheck or IRA withdrawals. Remember, getting a big refund is a signal you let the IRS have an interest-free loan throughout the year.
  2. Maximize your contributions to retirement accounts. They have gone up in 2023. The maximum for 401k contributions are now $22,500 up from $20,500. Catch-up contributions are up $1000 to $7,500 for people over 50. SIMPLE IRA maximums are now $15,500 from $14,000. 
  3. Review your deductions-are you getting maximum tax advantages on charitable donations? Many people don’t give enough to itemize their taxes. Instead, give low-cost basis stock. If you are over 70.5 years old, do qualified charitable distributions
  4. Plan for estimated taxes: If you are self-employed or have income that is not subject to withholding, make sure you are paying estimated taxes on time to avoid penalties.
  5. Remember non-working spousal IRA contributions. If you are married and file a joint tax return, your non-working spouse can contribute to their IRA. Many people miss this opportunity.  

Important extra credit: We recommend having an open line of communication between your financial advisor and your tax preparer. We get clients to sign a permission form so we can talk directly to their CPA. Many opportunities can happen throughout the year that can reduce your tax burden. Good communication can increase your chances for tax planning success! 😊

Let me know if we can help in any way. Email me at [email protected] or CLICK HERE to set up a phone appointment. 

On the lighter side, Elliott and I have been playing chess lately. I used to be able to get the best of him. Now he is just too good. He is winning 2 out of 3 games. 

Hope all is well with you and your family,


Finger Financial Five – 5 points in 5 minutes or less – is to provide you with a weekly shot of useful financial information.  My intention is to share principles, so that you will have more clarity and peace, that help you make better financial decisions.

Investment advice offered through Stratos Wealth Advisors, LLC, a registered investment advisor; DBA Riverbend Wealth Management.

This content is developed from sources believed to be providing accurate information and provided by Riverbend Wealth Management. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Stratos Wealth Partners and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.


More Content from Riverbend

Get Your Free Download

Submit the form and a member of our team will email you a copy of the Retirement Ready Checklist. 


Retirement Ready Checklist

  • This field is for validation purposes and should be left unchanged.
Skip to content