Tax Tip of the Week

This is a fresh new year and a great time to get your finances in order.  If you haven't started saving for retirement, now is an excellent time.  First you should check out your available options:

•  Does your employer offer a 401K plan?  If so, start contributing to it.  If you are already enrolled in it, try to work up to contributing the maximum allowable contribution ($16,500 for 2009, $22,000 if you turn 50 this year).   Your paycheck may decrease, but not by the amount of your contribution because less taxes will be withheld.
•  Start contributing to an IRA.  It's much easier (and a better approach from an investment perspective) to pay it weekly or even monthly rather than waiting until the end of the year.  The annual contribution limit for 2009 is $5,000 ($ 6,000 if you turn 50 this year).
•  If self-employed there are a variety of retirement plans available. 

Start gathering your 2008 tax records in order for your return to be prepared.  It is best to do this while the year 2008 is still fresh in your memory.  You can always file your return early and send in a check on April 15th (if you owe anything) 

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