Fiscal cliff looming? Ten tax moves to make now.
Americans are facing an unprecedented tax increase of nearly $500 billion on Jan. 1, 2013, from the so-called "fiscal cliff." Are you ready? Here are 10 year-end tax strategies I recommend:
4. Stop making excess pre-tax 401(k) contributions
Once you have put in the maximum your employer will match, you don’t want to risk deferring income into a higher tax bracket. Wait until 2013 to start maximizing pre-tax 401(k) contributions again. You could switch to making Roth 401(k) contributions if your employer offers the option.