Year-End Tax Items

​Below is a list of financial items to review before year-end…

​Retirement Plan Contributions
Year-end is always a good time to check your employer retirement plans, as December 31st is the deadline for 2024 changes. Our Tax & Financial Data form provides you with limits and other key data. Consider maxing out your contributions if the budget allows!
 
Required Minimum Distributions (RMD’s)
Take care of those RMD’s to avoid IRS penalties! Best to check with your financial account administrator to ensure compliance. You may also consider a Qualified Charitable Distribution (QCD) with your RMD.
 
Business Owner Filings
If you own a business, be sure you’re compliant with the new Beneficial Ownership Information reporting requirements, as year-end is the filing deadline for many.
 
Gifts to Individuals
The 2024 annual exclusion limit on gifts is $18,000 per person. If you have individuals to whom you’re looking to give a gift, be sure to do so by December 31st as the limit resets January 1 for the New Year, up to $19,000. So, by giving your gifts before the New Year, you allow a larger amount to be given without any gift tax return filing requirements. For more info, check out our article on gift-giving and taxes.
 
Donations to Charity
Giving Tuesday has passed, but you still have until year-end to donate and get a deduction for the 2024 tax year, assuming you itemize deductions. Remember, donations must be made to qualified charitable organizations to be eligible for a tax deduction. Donations to individuals does not qualify, and this includes Go-Fund-Me contributions.
 
Roth IRA Conversions
With markets being at/near all-time highs, now may not be the best time for your Roth Conversions, but if it makes sense due to you being in a lower tax bracket this year or having a lower income year, December 31st is the deadline for conversions to fit in the 2024 tax year.
 
Flex Spending Accounts (FSA’s)
Many FSA’s have a “use it or lose it” policy. Be sure you’re not leaving any money on the table by not applying your FSA funds toward qualified medical expenses.
 
Budget Recap
This isn’t necessarily a tax item, but a key year-end task for your finances! Look back at your average spending for 2024 and update your budget to best prepare for 2025. This is a great annual task to complete!