Year-End Financial Planning: Retirement, HSAs and Taxes
Greetings!
End of Year Reminders and Updates for 2024:
1. Retirement Accounts
If your objective is to max out your retirement, check your last paystub to see if you are on track on your 401k/403b/457 (annual limits below)
For IRAs, you do have until the tax filing deadline (typically mid-April 2024) to max out for year 2023. If you are doing a back-door Roth IRA contribution, consider doing it before 12/31/2023. It's less complicated to file your taxes when it's done in the same year, your CPA will thank you.
2. HSAs & FSAs
HSAs also should be maximized before end of year, if you don’t use the money it will roll into next year and can be used then
FSAs typically need to be used before the end of the year (some plans allow a grace period into next year). If you don’t use the funds, you lose them
3. Taxable Investment Accounts
Review to see if any losses can be harvested before end of year
If you have large capital gains and give to charity, you can donate those funds without selling them and incurring a capital gain
4. Remaining Items on your Checklist
What did you set out to accomplish this year that you haven’t gotten around to yet? Now is a good time before the holiday season
Common items: Updating your estate plan (or starting one) Reviewing your insurance coverage Reviewing the interest rates on your savings accounts, are you in a high yield savings account at least earning 4%? Or is your money still sitting in a checking account earning nothing?
Until next month, TF
Historical article · Originally published November 2023. Market data and tax rules reflect the original publication date. Past performance is not a guarantee of future results. Editorial and compliance review pending.