April 17 will be here soon. As you prepare your 2017 taxes, we would like to remind you of some possible tax-saving considerations:
If you are covered under a High Deductible Health Plan for your medical insurance, you may be able to make a tax deductible contribution to an HSA. You have until April 17, 2018 to contribute to an HSA for 2017. The money remains in your account and may be used to pay for any qualified expenses in the future and/or invested*.
Contribution limits for 2017 are:
- $3,400 for single
- $6,750 for family
- $1,000 additional catch-up contribution for age 55 and older
Individual Retirement Accounts (IRA)
If eligible, you can make a deductible contribution to an IRA by April 17, 2018. Contributions are limited to $5,500 if under age 50 and $6,500 if over age 50.
If you are self-employed, consider making contributions to the following:
- SIMPLE IRA or Safe Harbor 401k – These plans need to be established by October 1 of the preceding year. Contributions must be made by either April 17, 2018, or by October 15, 2018 if there is an extension.
- SEP IRA – The plan must be established by and the employer contributions made by April 17, 2018, or October 15, 2018 with an extension.
SC Future Scholar 529 Plan
2017 contributions to the SC Future Scholar 529 plan may be made until April 17, 2018 and may be used by state residents to lower SC taxable income. A state income tax deduction of up to 100% of contributions (including rollovers) to a Future Scholar 529 plan is available for South Carolina tax payers.
Your team at NNP is ready to help during tax season. We are happy to work with your tax advisor to determine the viability of any of these strategies. Give us a call at (864) 467-9800.
*minimums might be required.