Tax Planning

[swogden]

The Fiscal Cliff thread gave me pause.

I firmly believe US federal tax rates will be higher by .03 next year in each tax bracket.

We have 6 weeks left in 2012 to do a little tax planning. 

The idea would be to shift income that might come in 2013 or later into 2012 to take advantage of the lower tax rates this year than in the future.  Alternatively, shift deductions from 2012 into 2013 (if you itemize).

If you are of an age where you have a traditional IRA and a Roth IRA, you could roll over some of the  traditional IRA funds into your Roth IRA. 

Would not recommend this for people under 55 but folks getting close to 70.5, this has distinct advantages. 

Also would not recommend doing this unless you're sure you can invest the funds in the Roth IRA and earn at least as much as you're earning in your Trad IRA.

Any other ideas?