April Isn’t the Only Month for Financial Action

By Elsie Dudukovich0 Comments

It’s easy to only think of financial planning in terms of the April tax deadline and New Year’s resolutions. By the time December comes around, many people find the holiday spending to be the main thing they’re concerned with since everything else happens ‘next year.’  It’s easy to see the year as basically over, but there are things you can do today to end 2014 on a good note – as well as prepare for 2015.

There are lots of great lists and ideas to work from, but here are some things to get you started on making the most of the end of 2014.
  • Make sure your 2014 Required Minimum Distribution (RMD) is complete.  If you have a Traditional IRA and are 70½ or older, your RMD is something you need to have checked off before the calendar changes.  It can be easy to forget about this task, and doing so may come with steep taxes and penalties.   
  • If you’ve already taken care of your RMD, the end of the year can be a great time to think about ways you can possibly adjust the tax impact for future RMDs by considering a Roth conversion.
  • Contribute the maximum amount to your IRA.  If you’re working and find a holiday bonus or some year-end overtime is coming your way, this can be an opportunity to contribute more your account.  If you have a non-working spouse, this extra money can also go towards opening or contributing to a spousal IRA.
  • If your holiday traditions include charitable giving, see if your donations are tax-deductible.  You might find this is a way to increase your deductions if you itemize.  Touch base with your tax advisor on the best ways to go about making the most of this possible option.
  • If you have a Flexible Spending Account (FSA) as part of your employment benefits, check if there is a deadline.  A number of plans require those funds to be used by the end of year and you could be in a “use it or lose it” situation.  This can be an opportunity for new glasses, dental work, ordering contact lenses, etc.  
Find out if there are any other end-of-year activities that could benefit you. Schedule a one-on-one IRA checkup with one of our Senior Account Executives to talk through your specific situation. Don’t miss out on any incentives you could be claiming!