Pension & profit-sharing plans: reduce income by establishing a retirement plan. Although taxpayers may establish and fund an IRA prior to April 15,2015, a profit-sharing or defined benefit plan must be established before January 1, 2015, and funding is not required until the due date, including extensions, of the return.
Qualified Longevity Annuity Contract (QLAC):A new IRs regulation allows an individual to establish a QLAC in his or her IRA. The funds in the QLAC escape RMD requirements until the taxpayer turns age 85. This can reduce taxable income.
IRA to Charity: Make an IRA-toCharity direct rtransfer in case the IRA-to-Charity provision is extended.