The end of year is full of hustle and bustle. There is shopping to be done. Gatherings with friends and family abound. Amid the flurry of activities, one thing that should not be neglected is your end-of-year financial tasks. Here is a quick list of those tasks to consider acting upon:
- Schedule a meeting with your financial planner. The beginning of the new year is a good time for a financial check up. Your financial planner can help segment or prioritize goals for 2017. It is also a good time to review any life insurance policies and their coverages. If there are any changes, such as a new member of the family, additional assets or additional liabilities, these should be considered in your coverage.
- Max out retirement contributions. Contribution to an individual retirement account can be included in the current year up to when you file a tax return. However, contributions to a 401k must be made in the same calendar year. For specific 2016 maximum contribution amounts, CLICK HERE!
- Use up all your FSA money! If you set aside funds in your flexible spending account for health care expenses, use it up! Buy a new pair of glasses or get that dental work you’ve been putting off done ASAP. A few companies offer a grace period into the spring or a $500 FSA carry-over from one year to the next. If your employer doesn’t offer these provisions, any unused funds will be LOST once we ring in the new year!
- Check your beneficiaries. Check your beneficiaries on your retirement accounts or insurance policies. This can be done any time of the year, but this is a good time to do it if you haven’t already done so. Make this as part of your end of year routine and it will be easier to manage.
- Donate to charity. The deadline for donations to count in the current year is December 31st. Organizations appreciate cash, but if that is not an option for you, securities or other assets can be donated. These donations can help avoid capital gains. If you are not sure where to donate, you can set up a DAF which is a donor advised fund for future donations. Note that the tax deduction can only be taken when the DAF is set up, and not for any future donation from the fund.
This is just a simple list of last-minute moves that will qualify you for retirement savings tax perks.
For more information CLICK HERE! Get to it and get the tax savings you deserve.
To schedule a time to review your insurance policy purchased through Legacy Insurance & Investment Group LLC,
or review the beneficiaries on your account call 708.572.7181.