As the April 15 tax deadline approaches, here are some important last-minute tax considerations to keep in mind:
Schwab Tax Forms Now Available
If you took a distribution from your IRA last year or completed a backdoor Roth conversion, your Schwab tax forms should now be available. Be sure to review them carefully when preparing your return.
Form 8606 for Non-Deductible IRA Contributions
If you made a non-deductible contribution to an IRA, don’t forget to file Form 8606 with your tax return. This form is essential for tracking your basis in the IRA and avoiding double taxation on withdrawals in the future.
Still Time for 2024 IRA Contributions
You have until April 15, 2025, to make 2024 IRA contributions. Even if your contribution is not tax-deductible, the tax-deferred growth within an IRA can still be highly beneficial for long-term savings.
Consider a Spousal IRA Contribution
For families with a non-working spouse, making a spousal IRA contribution can be a smart way to maximize retirement savings. This strategy allows a working spouse to contribute to an IRA on behalf of their non-working spouse, increasing overall retirement security.
Roth IRA Gifts for Young Adults
If you’re a parent or grandparent looking to help a young adult with little income jump-start their retirement savings, consider making a Roth IRA contribution on their behalf. As long as they have earned income, this is a great way to provide tax-free growth and future financial security.
Smart Tax Planning for 2025 Starts Now
Proactive tax planning can help you reduce your tax burden and make filing easier next year. If you have any tax-related questions, or if you’d like to start planning ahead for 2025, reach out to us today—we’re here to help!
Note: This article was written with the assistance of AI and edited by the author.
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