Tax Moves to Consider Before December 31

The calendar is closing in on a handful of deadlines. Before the year ends, here are a few money moves that may be worth a look while there's still time to act.

Deadlines

For most workplace retirement accounts, December 31 is the cutoff for contributions to count toward this year's total. IRAs usually allow a bit more time, into the following spring.

• Required minimum distributions apply to some account holders once they reach a specific age. Missing that withdrawal may incur a penalty.

• Flexible spending account balances don't automatically carry over. Whether any leftover funds roll into next year or extend into a grace period depends on the employer's plan, so it's worth checking.

Worth a Second Look

A few other things tend to get overlooked until it's too late to act on them.

• Selling investments held at a loss can help offset gains elsewhere, sometimes called tax-loss harvesting. Timing matters here.

• Health savings account contributions have a yearly maximum. Unlike FSAs, HSA balances roll over.

• Check with your tax, legal or accounting professional before making any moves with the assumption that they will benefit you at tax time.

What Now?

December 31 doesn't leave much room for do-overs. A brief conversation now can strengthen your position for the future.

Year-end financial planning doesn't have to be overwhelming, but it does require acting before key deadlines pass. If you'd like to review your retirement contributions, required distributions, tax planning opportunities, or simply make sure you're on track for the year ahead, I'm here to help.

Call our office at 717-630-1001 or email me directly at timohm@rigglewealth.com to schedule a conversation. Together, we can review your financial strategy and help you finish the year with confidence.