Easy Year-End Steps for Today

  1. 529 Plan contributions need to be received by the last day of the year. For Indiana residents, missing this deadline can result in the loss of a $1,000 tax credit. Check your year-to-date contributions soon.
  2. Required Minimum Distributions are a major tax-trap with a penalty of 50% of the amount missed. If you are over age 70 1/2, or have an inherited IRA, be sure you’ve satisfied this requirement for the year.
  3. After the last few years, your investment accounts may be full of unrealized capital gains. Rebalance if needed, look for losses to offset gains, and be careful. A slick sales-pitch convincing you to change your portfolio now could cost you huge capital gain taxes.
  4. Check your last pay stub. Are you almost at the 401k limit for the year? $17,500 is the max for 2013 and 2014, plus another $5,500 if you are over age 50. There is time to make adjustments if you are short of maximizing this benefit.

If you dislike being given lists of things to do, we completely understand! That is why we handle each of these year-end matters, and other items not listed, for every client. Just click on getting started to ask how this works.