Tip of the Month | November 2022

Year-End Deadlines

Written By: Andrea Bulen, CFP®

The end of the year is quickly approaching with Thanksgiving almost here. We all know how fast the holiday season goes, so now is a good time to review if you have any financial planning items to check off your list before year-end. Here’s a quick snapshot of items to remember:

Contributions to Retirement Accounts: If you are still employed and contributing to an employer sponsored retirement plan, double check that you will have contributed the maximum by year-end ($20,500 or $27,000 for those 50 or older). If you find that you’ll be short of the maximum, work with your HR department to modify your paycheck for larger contributions for the last few paychecks of the year.

Qualified Charitable Distributions (QCD): If you are 70.5 or older and using your IRA to make charitable contributions, aim to have all your checks written by Thanksgiving. Checks need to be received AND cashed before year-end, otherwise they will not count towards your 2022 distributions.

Required Minimum Distributions (RMD): If you are 72 or older and have an IRA or Inherited IRA, have you taken this year’s RMD? Getting these distributions complete by mid-December avoids any year-end hassles.

Review Your 2022 Tax Situation for Several Potential Items:

1) Have you paid enough income tax in 2022 to avoid penalties in April?

2) Should you consider adding more income in 2022 via a Roth conversion or capital gain recognition?

3) Should you make a larger than normal charitable gift?

Reach out to you Shakespeare advisor with any questions.