As we enter into the last couple of months of the year there is still time to take advantage of some year-end financial planning strategies. Consider the following:

• Review your contributions to employer retirement plans. The maximum contribution in 2008 to a 401(k), 403(b) or 457 Plan is $15,500 and taxpayers age 50 and older may make "catch-up" contributions of $5,000. The maximum contribution to a SIMPLE Plan in 2008 is $10,500 with a "catch-up" contribution of $2,500 for taxpayers age 50 and older. SEP IRA contributions for 2008 are limited to no more than 25% of compensation, up to $46,000.
• Review contributions to Traditional or Roth IRAs. The maximum contribution, if you qualify, is $5,000 in 2008 and taxpayers age 50 and older may make "catch-up" contributions of $1,000. You have until April 15, 2009 to make contributions for the 2008 tax year.
• Harvest losses in your non-qualified accounts to offset current capital gains and up to $3,000 of ordinary income.
• If you have large IRA balanced, are between the ages 59½ and 70½, and in a low tax bracket (0% -15%) you may consider taking distributions from your IRA assets to fill your income tax bracket.
• Take advantage of "bunching your itemized deductions" as a means for minimizing your income taxes, where you pay as many deductions as possible in one year and very few in the next year. For example, pre-pay your January 2009 mortgage payment in December 2008 to receive an additional month’s tax-deductible interest.
• An individual may gift up to $12,000 in 2008 ($24,000 per couple) to as many people as they desire without incurring any gift tax consequences. More can be gifted, but the unified credit available and/or gift taxes may be impacted.
• As a reminder, if you are 70 ½ or older, be sure to take your required minimum distribution (RMD). Generally, you must begin RMDs from retirement plans, including IRAs, 401(k)s, 403(b)s and 457s no later than April 1 of the year after you turn age 70½. Each year thereafter, you must take your distribution by December 31.

Please contact your Wealth Enhancement Group Team if you wish to discuss your situation further, and remember to always seek the advice of your tax professional regarding your personal situation.