With tax changes upon us, consider taking advantage of these tax saving tips. Never try to implement strategies without the help of a qualified, knowledgeable clergy tax professional. Always talk to your tax advisor to learn which of these strategies are appropriate in your situation and how to implement them for your greatest advantage.
1. Contribute to the limit. You may save $5,000 – $9,000 of tax if you contribute to your Clergy Advantage 403(b) or Denominational Retirement Plan the maximum allowable amount: $22,000 if over age 50; $16,500 if younger. There are amazingly effective strategies to help you afford to contribute the maximum, especially if you are over 59 1/2!
2. Most often the best retrirement plan for a minister, by far, is either a Denominational Plan or the Clergy Advantage 403(b). The next best option usually is to contribute to a Roth IRA. Have you considered the dramatic benefits of these two opportunities? We can show you how these would work best in your situation.
3. If you have zero taxable income in 2010, we can show you how to convert money from an existing retirement account to a Roth IRA, typically with no tax!
4. If you own mutual funds, stock, land, houses, rentals, or other ivestments, the expiring capital gains rates make 2010 a huge opportunity to harvest gains at a discounted rate. The deadline is December of 2010, but don’t put this off until then. Talk about it now with your tax advisor and plan ahead.
Check this Blog next Monday or watch your inbox for our annual publication, “Tax Updates and Reminders” with more important information about your current tax savings opportunities for 2010 — to be emailed in our next E-newsletter. Contact us or Sign up for our free newsletters at clergy@clergysupport.com.
