A Year-End Financial Planning Checklist

Hello,

Changes from 2024 to 2025

BOI Update

In last month’s newsletter, I informed of a deadline of 12/31/24 for business owners to file a report that is a new requirement. On December 3, 2024, the U.S. District Court for the Eastern District of Texas issued a preliminary injunction blocking the U.S. Department of Treasury from enforcing the Corporate Transparency Act's (CTA) beneficial ownership information (BOI) reporting requirements.

Of course. At least for now, this report is not required.

Roth IRA Deadline

Have you contributed to your Roth IRA yet for 2024? As I have discussed in the past, we are big fans of Roth IRAs. Why? Because most likely your 401k is 100% pre-tax and there is now way of knowing with certainty what tax rate you will be paying in retirement when your withdraw from your 401k. Investing in a Roth IRA will help balance out your taxable 401k account with a tax-free account in the future. The deadline is April 15th, 2025, however if you are doing a back door Roth IRA, we like to do these prior to December 31st, 2024, as it makes the tax filing less complicated. Just remember, you should not do a back door Roth contribution if you have a Traditional IRA or SEP IRA as the contribution becomes taxable. The maximum amount is $7,000 if under 50 and $8,000 if over 50.