Worksheet 5: Tax-Advantaged Investment Analysis


Check the boxes below to indicate whether you are taking advantage of available tax breaks that can decrease income taxes and increase retirement savings. The more strategies you check off, the more savvy you are as a tax-advantaged investor.
Tax-Advantaged Investment
Strategy Currently
Do
Currently
Do Not Do
Not Applicable
1. Participate in a tax-deferred employer retirement savings plan, such as a 401(k) plan



2. Contribute the percentage of pay, such as 6%, required to earn the maximum match from your employer



3. Contribute the maximum amount of savings allowed in your employer plan



4. Take advantage of additional employer savings plan catch-up contributions for workers age 50 and older



5. Fully fund an IRA for yourself with earned income



6. Fully fund an IRA for your spouse (whether or not spouse is employed)



7. Take advantage of IRA catch-up contributions for workers age 50 and older



8. Make IRA contributions early in the tax year



9. Invest in a tax-deferred plan for self-employed persons, such as SEP or Keogh



10. Hold investments for more than a year to take advantage of long-term capital gains tax rates



11. Invest in tax-deferred annuities with after-tax dollars after funding employer plan and IRAs



12. Increase retirement plan savings as income increases and/or household expenses decrease