Alright, looks like we have time for just a few more questions here.

If you're under 59 1/2, you'll probably owe a 10% early withdrawal penalty. You'll also owe income taxes on the withdrawal, which could exceed the 20% withheld by Fidelity. Taking money out of a 401k is expensive, and should be avoided unless you're experiencing a genuine hardship.

This next question comes from Chuck.

Your friend is right. In most cases, the maximum you can deduct is the amount the charity gets for your car. If the charity sells donated cars to a company that sells them at auction, your deduction could be quite small--maybe $100. There is an exception. If you donate your car to a charity that fixes up cars and uses them as part of its mission--to deliver meals to seniors, for example, or gives them to low-income people--you can deduct the fair market value (the Kelley Blue Book value, for example). There aren't a lot of charities that do this, but they're worth seeking out.

Do you have time for one more question?

Wonderful. This one comes from JJF

Not if they're in your IRA. Earnings from dividends and capital gains in an IRA (or 401k) are tax-deferred. If you like the dividend-payers, don't sell them.

That's right. Our general advice for taxable accounts is that if you have some stocks or funds you've been thinking of selling in the near future, you might want to do it by year-end. But you shouldn't jettison long-term investments with good earnings potential because you're worried about tax increases.

Well unfortunately we are out of time for today's chat.

And thank you so much for joining us today, Sandra.

For more year-end tax moves, make sure to read Sandra’s article Year-End Tax Moves for 2012, plus check out our archive of tax tips.

Until next time!