Take Time to Make Time for Taxes - ugh!

Year 'round tax prep can save you time in the long run when April 15 pops up like spring daffodils!  Major tax problems can develop any time during the year - that's the problem.  Even though you may not have to pay until April 15, you need to be aware of the tax consequences of what you do now.  One area of concern is with IRA's.  Before you take money out of one, be sure you are doing it the right way.  Not being careful could cost you a lot of money since the rules are illogical and complicated.  Logic and reasoning may not work like you think it might and it could get costly in the long run.  In some circumstances, it is possible to avoid a penalty even if your are not of the required age.  By not having a large retirement income you may be able to avoid paying any taxes on your pension.  The bottom line here is planning, analysis, and probably advice from a tax professional. 

Speaking of pension plans:  If you are considering a pension plan, take time to plan your method of funding retirement.  Other than a SEP pension plan, a qualified plan must be set up before December 31.  When December rolls around it's too late to start thinking about it.  Also, sometimes the cost of maintaining certain plans outweigh your tax savings.  Give yourself plenty of time to think it out. 

If you're the owner of a small business, there is one error you should never make:  never forget to pay payroll taxes.  By ignorning this you may create the equivalent of a terminal illness for your financial well being.  In all these areas:  IRA's, Pension Plans, and Payroll taxes, the key is to be aware, analyze, think, plan, pray, and do the right thing. 

Now, go out there and enjoy gazing upon your daffodils and tulips popping up out of the ground again!