Expert perspective
Prep for the new year with these five simple tax tips
December 19, 2023
Some of the most effective tax strategies are best implemented before the year ends—and the clock is ticking. Vanguard financial advisor Julie Virta recently shared year-end tax tips with Kiplinger readers.
Virta's year-end tax suggestions include:
- Maximize 401(k) (and similar retirement plan) contributions, at least enough to capture an employer’s match.
- Sell losing stocks or bonds to gain potential tax efficiencies in the current and future years.
- Invest in low-cost, low-turnover mutual funds and exchange-traded funds.
- Maximize tax strategies associated with charitable giving.
- Make gifts to family, particularly to fund a college savings plan or transfer wealth over time.
Related links:
- Greater tax efficiency through equity asset location (article, issued October 2023)
- Fundamentals of tax planning: Going beyond the basics (18-page PDF, issued August 2023)
- Income-driven financial planning may help reduce taxes (article, issued August 2023)
- Get the most bang for your charitable giving buck (article, issued November 2022)
Notes:
Neither Vanguard nor its financial advisors provide tax and/or legal advice. This information is general and educational in nature and should not be considered tax and/or legal advice.
Any tax-related information discussed herein is based on tax laws, regulations, judicial opinions, and other guidance that are complex and subject to change. Additional tax rules not discussed herein may also be applicable to your situation. Vanguard makes no warranties regarding such information, or the results obtained by its use, and disclaims any liability arising out of your use of, or any tax positions taken in reliance on, such information. We recommend you consult a tax and/or legal advisor about your individual situation.
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