Tax Tips To Do List

Here is a quick list of tax to-do’s to keep in mind this year-end:

  1. If you’re in a low tax bracket this year, consider whether converting your Traditional IRA to a Roth IRA is appropriate.
  2. Max out your 401k, 403b and IRA. A dollar saved means a dollar less of taxable income.
  3. Spend the funds in your Flexible Savings Account (FSA) as those expire.
  4. If you are over age 70 1/2, take your Required Minimum Distribution (RMD) from your IRA so to not be penalized 50%.
  5. If you are required to take your RMD, consider making it a Qualified Charitable Deduction (QCD). The qualified charity gets a donation, you take care of your distribution, and you avoid paying taxes on the distribution from your IRA.
  6. If you have holdings with losses in a taxable account, consider selling those. Losses can offset taxable gains and can even be carried forward to be used to offset future gains or even provide a small deduction.
  7. If you itemize your deductions, consider whether it is appropriate to prepay property taxes, make an additional mortgage payment, or to prepay pledged charitable contributions and professional dues.
  8. With end of year raises and bonuses, this is a great time to review your budget for 2017, re-establish your goals and priorities, and determine whether you will benefit for company perks such as a dependent care savings account (if you have children in childcare), FSA plans, and other benefits that are offered.

In addition to the above tax tips, this is a great time to review your life and disability insurance, beneficiaries on insurance and retirement plans, and to ensure all of your estate planning documents are in order. Read why estate planning is important at any age, even if you feel like you don’t have a lot to plan for it is more important that you may know!



Disclaimer: I am a CERTIFIED FINANCIAL PLANNER TM (CFP®), but I am not your CFP® or financial advisor. The information in this article is for general informational and entertainment purposes only and does not constitute financial advice. This article does not create a financial planner-client relationship. The author is not liable for any losses or damages related to actions of failure to act related to the content in this article. If you need specific financial advice, consult with a licensed financial advisor or CFP® who can tailor advice regarding your specific circumstances. Additionally, sometimes I use affiliate links to support my website. This means I may earn a small commission, which is no additional cost to you, for referring and discussing products and services that I personally use, or have used, and trust. Thanks for your support!