Give yourself greater peace of mind as a gift for the holidays by devoting a day or two to improving your financial health. You'll start the New Year right on track! Email Article Print Article Bookmark RSS

Start by organizing your finances: file all your statements, gather all insurance policies, locate your will, and look at your investments. Find out what needs improvement before the new year approaches.

To stay on track for 2006, here are 7 helpful tips to keep in mind:

#1) The 2006 Retirement Contribution Limit Changes

• The maximum Traditional and Roth IRA contributions is $4,000
• The maximum Simple IRA contributions is $10,000
• The maximum 401(k) and 403(b) employee contribution increases from $14,000 to $15,000.
• Taxpayers who are at least age 50 before the end of 2006 can increase their contribution limits by the following amounts for the following plans (called the catch-up contribution limit):
  • An additional $5,000 for 401(k), 403(b), salary reduction SEP plans, and 457 plans
  • An additional $2,500 for SIMPLE plans
  • An additional $1,000 for IRAs (both traditional and Roth IRAs)

#2) Home Office Deductions
Although you may not qualify for a home-office deduction, it doesn't mean you can't claim any expenses that are associated with a home-based business. Office supplies, the cost of bringing in a second telephone line, purchasing a fax machine, home mortgage interest and real estate taxes are allowed as an itemized deduction on your tax return.

#3) A Resource Book to buy and turn to all year long.
J.K. Lasser's 1001 Deductions and Tax Breaks 2006: The Complete Guide to Everything Deductible
Barbara Weltman
ISBN: 0-471-73309-1
Paperback
415 pages
$16.95

#4) Charitable Contributions

Don't forget to donate money (or clothes, furniture or equipment) all year long. If you don't have the cash, you can still take a deduction by putting your donation on a credit card. You can pledge your donation now and then using it as a deduction for next year when you pay the bill.

#5) Free Credit Rating
www.annualcreditreport.com

Here is central site that allows you to request a free credit file disclosure, commonly called a credit report, once every 12 months from each of the nationwide consumer credit reporting companies: Equifax, Experian and TransUnion.  You can also request your report by phone or mail.  Monitoring and periodically reviewing your credit report is an effective tool in fighting identity theft.

#6) Increase Your Savings Right Away

Go to: www.keycode.com. Here's another helpful website that will alert you to the latest hot deals, discount coupons and latest special offers from many of your favorite retailers. It's an easy and quick way to save more money on your next purchase.

#7) The Top 10 Tax and Financial Planning Tips for Saving Money in 2006

Just e-mail me at: nlfusco@aol.com and I can help you start saving money immediately by e-mailing you my Top 10 Tips.

Give yourself greater peace of mind as a gift for the holidays by devoting a day or two to improving your financial health. You'll start the New Year right on track!

Noa Lessing Fusco is a personal financial advisor and owner of Noa Lessing Fusco, LLC a fee-only financial services company in Westchester County, NY.

Noa Lessing Fusco, LLC provides comprehensive financial advice and planning on an hourly as needed or fee only basis. For further information go to: www.noalessingfusco.com.

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