PMD: 2016 Year End Tax Tune Up

Happy Thanksgiving!  And welcome to another installment of Future Proof posts on Physician's Money Digest (PMD).  While you are probably busy planning out your Black Friday spending spree, I would like play buzzkill and get you thinking about savings - from Uncle Sam.  As usual, read the full post at PMD.  An excerpt is included below.

Happy Thanksgiving!  As we near the end of 2016, I'm sure you've got your mind on some holiday shopping.  But I want to redirect your attention to holiday savings - specifically saving from Uncle Sam.  If you find yourself with an extra 30 minutes and want to use it to keep more of your hard-earned money, consider these year end tax tune up tips.  Have you done them all?
1.  Max out your employer sponsored retirement plans (401k/403b/457).  Some of you may be lucky enough to have the benefit of both a 403b AND a 457 plan – You’ll be able to contribute up to the $18,000 limit for BOTH plans!  If $18,000 is too much to save, at least max out the portion matched by your employer.  Keep in mind all contributions must come thru payroll deduction - I learned that the hard way
2.  Max out your Individual Retirement Arrangements (IRA), preferably a ROTH IRA.  While you won't get cool benefits like employer matching contributions, IRAs also help you build wealth long term.
3. Max out your Health Savings Account (HSA). As far as why an HSA is advantageous to your wealth (pun intended), see my previous posts HERE and HERE.

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Future Proof, MD

Dr. Bo Liu is an aspiring radiologist-in-training and the founder and editor of the White Coat Money Blog.  He has an interest in interventional radiology and helping his medical colleagues get ahead in this mad world of medicine and money.  When he's not crushing the list at the PACS station or typing up your next favorite blog post, you can usually find him at the local badminton club, movie theater or the most recently opened restaurant.