There is still time to implement tax-smart strategies before the end of the year.
Chris Hennessey highlights planning actions for investors seeking ways to improve their tax situation by increasing or reducing their taxable income level.
For investors in a lower tax bracket, there are strategies to increase income level in the current tax year, such as realizing capital gains, or converting a traditional IRA to a Roth IRA.
Taxpayers in a higher tax bracket will likely want to reduce taxable income. They may consider maximizing deductions, harvesting losses to offset capital gains, and identifying investment actions that could be taken in 2016 to avoid an impact in the current tax year. In addition, the fourth-quarter is an opportune time for employees to review tax-advantaged benefits.