End of year financial things I can do that will benefit me on taxes.

Factual Questions
1

I’m a self-employed person- I do freelance graphic design and also have an LLC I started this year.

I remember my financial advisor telling me that I could sock a chunk of change towards some kind of 401K-type investment that would benefit me hugely with regard to my tax return, but I’m headed out of town for the rest of the year and stupidly never made arrangements to do this and now it’s Dec 19…

Can somebody (who, of course, isn’t my financial advisor) give me some hints on what this type of investment might be, so I can decide whether I should try to squeeze in an appointment with my guy to discuss?

2

Probably a Self Employed 401(k) which you can read about here:

http://personal.fidelity.com/products/retirement/getstart/newacc/keogh.shtml.cvsr?refpr=sb006

(Note: I don’t have any personal knowledge of this, but the link seems to have some good basic information that should help you get started.)

3

Crap, thanks for the reminder. I thought I had til April to set it up, but I guess I should fill out the forms now.

4

You have to open the account by Dec. 31, but you don’t have to make your deposit until April 15. My wife has a SEP, which she might contribute to during the year, but doesn’t finalize until we do our taxes and figure out the max she can put in.

Other things that can help.

Pay any due real estate taxes this year instead of next, if you think this year’s income is higher.

Don’t put off charitable contributions.

If you feel you have stock that is going to be a loss, and you have gains this year, now is the time to dump it.

A lot depends on what you predict your income will be next year.

My wife is a writer, and her income fluctuates, so we’re always figuring this kind of thing out about now.