Can I differ tax on investment I make today?

[mshirash]

Hi,
I am looking for reducing taxable income by making some investment.
I have maxed out 401k and Traditional IRA limits.
Are there any investments like Annuities OR Bonds OR any Oil and Natural Gas funds, where I can invest this year and reduce my taxable income?

Thanks,
MSHIRASH

[MakeAStash]

A Health Savings Account, if you qualify for one, allows income to be contributed before tax, and allows tax free withdrawals to pay for medical expenses.

[dczech09]

Another option is a variable annuity. Those are tax-deferred as well, and allow you to invest in options such as mutual funds. However, I would recommend maxing the health savings account first. Variable annuities come with pretty high fees.

[Petunia 100]

Another option is a variable annuity. Those are tax-deferred as well, and allow you to invest in options such as mutual funds. However, I would recommend maxing the health savings account first. Variable annuities come with pretty high fees.

Contributions to a variable annuity will not reduce Mshirash's 2013 taxable income.

[dczech09]

Contributions to a variable annuity will not reduce Mshirash's 2013 taxable income.

My bad. I did not realize OP was looking to reduce taxable income. I just assumed they were looking for a way to defer taxes on investment earnings.

To clarify:
With a variable annuity, you contribute AFTER-TAX dollars but do not pay the taxes on your investment dollars until you take the money out. So while it does offer tax deferred growth, it does not offer a tax deduction.

Just a miscommunication of terms

[disneysteve]

If you have children and need to save for college, check if your state offers a tax break for 529 contributions. Some do, some don't (mine doesn't).

If you are a regular charitable giver, you could establish a donor directed fund. I'm not positive of the details but I believe you contribute money to the fund, get a tax donation for that contribution, but then can distribute the money over time to charities of your choosing. If I'm right on that, it would mean you could get a larger deduction this year even if you don't distribute all of the funds until a later date. Check on the details though.

[jIM_Ohio]

Hi,
I am looking for reducing taxable income by making some investment.
I have maxed out 401k and Traditional IRA limits.
Are there any investments like Annuities OR Bonds OR any Oil and Natural Gas funds, where I can invest this year and reduce my taxable income?

Thanks,
MSHIRASH

Make sure you are asking the right questions.

Are you trying to lower your taxes, or generate the highest after tax returns with all of your investments?
What is the goal of your investment money (retirement, kids college, second house, other)?
Do you have a mortgage, what is the interest rate?
What tax bracket are you in?

[Rogerthat11]

A Health Savings Account, if you qualify for one, allows income to be contributed before tax, and allows tax free withdrawals to pay for medical expenses.

Thank you for this.