Consider taking advantage of these timely tips before you hit the road for your holiday vacation.

Our clients have successfully used these techniques to save thousands of dollars now and in the future.

Charitable gifts are not taxable up to $12,000 per year. In 2009 charitable gifts will increase to $13,000.

Gifts of cash and appreciated assets need to be completed by Dec 31.

Consider the IRA Charitable Rollover which is only available for 2008 and 2009. If you are 70 ½ you may give all or part of your required distribution to a qualified charitable organization without having to count it in your taxable income.

Consider a gift annuity. You receive a tax deduction today, income for a period of time, and the charity benefits from the value of the annuity at the end of the period or death of the donor.

For many investors, tax gain/loss harvesting is the single most important tool for reducing taxes now and in the future. If properly applied, it can save you taxes and help you diversify your portfolio in ways you may not have considered. You may also use up to $3,000 of excess losses to offset ordinary income.

Based on our current economic conditions tax rates may increase. Consider taking advantage of tax losses and gains now if you believe taxes will increase.

For 2009, the maximum annual HSA contribution for an eligible individual with self-only coverage is $3,000.

For family coverage, the maximum annual HSA contribution is $5,950.

Catch up contribution for individual who are 55 or older is increased by statute to $1,000 for 2009 and all years going forward.

Individuals who are eligible individuals on the first day of the last month of the taxable year (December for most taxpayers) are allowed the full annual contribution (plus catch up contribution, if 55 or older by year end), regardless of the number of months the individual was an eligible individual in the year. For individuals who are no longer eligible individuals on that date, both the HSA contribution and catch up contribution apply pro rata based on the number of months of the year a taxpayer is an eligible individual.

Amounts remaining in an FSA for medical costs and dependent care costs must be forfeited at the end of the year (or by March 15 after the close of the year if the employer adopts a grace period). Therefore, individuals should make every effort to use the remaining balance in the account on qualified expenses, such as eyeglasses, contact lenses, medications, hearing aids, medical supplies, and routine dental care, by either the end of the year or the end of the grace period, if applicable.

Funding a retirement plan must be set up by Dec 31, but it does not need to be funded until you either file your tax return or April 15. Maximize your individual retirement account (IRA) – $5,000 (+ $1,000 age 50 or older).

Below are a few charts listing contribution limits:

Feel free to contact a highWAY advisor to discuss how the above money saving ideas and information may apply to your unique financial situation.  

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