Year-End Financial Planning Checklist

The last few months of the year always seem to fly by. Between holiday plans and wrapping up work projects, it’s easy to forget about your finances. But taking a little time now to check a few boxes can pay off big in the long run, especially when it comes to taxes and retirement savings. While market returns have been strong this year, which is great news, it’s important to remember that is only one aspect of a financial plan. We should remain focused on optimizing efficiency in other areas as well.

Here’s a list of what you might want to tackle before the year ends, if you haven't already.

Year-End Financial Review Items

1. Max Out Your Retirement Contributions

Retirement accounts like 401(k)s and IRAs are great for lowering your taxable income while building a strong financial future. Take a moment to see how much you’ve contributed this year, there’s still time to increase or max out your contributions. A Roth IRA could make more sense if you meet the income eligibility and prefer tax-free growth instead of a deduction this year.

• 2024 Contribution Limits:

• IRA: $7,000 (or $8,000 if you’re 50 or older)

• 401(k): $23,000 (plus an extra $7,500 if you’re 50+)

Deadlines: 401(k): Dec. 31, 2024, IRA: April 15, 2025

2. Review Tax Harvesting Opportunities

Take a good look at your portfolio before the year ends. If some investments didn’t perform well, you could sell them to offset gains elsewhere, this is called tax-loss harvesting. On the flip side, you might consider selling assets that have gained value, especially if you’re in a lower tax bracket this year. Only attempt this strategy on your own if you are familiar with wash sale rules, capital gain (or loss) taxation and carryover, and how it could impact the rest of your plan.

Deadline: Dec. 31, 2024

3. Take Required Minimum Distributions (RMDs)

If you’re 73 or older, the IRS requires you to withdraw a certain amount from retirement accounts every year. Forgetting to do this could mean hefty penalties, so make sure you’ve taken your RMD by year’s end.

Deadline: Dec. 31, 2024 (or April 1, 2025, if it’s your first RMD).

4. Make Charitable Contributions

Want to make a difference and potentially lower your tax bill? Consider donating to a cause close to your heart. Remember, most donations are a tax break only if you itemize your deductions. If you’re 70½ or older, you can use a Qualified Charitable Distribution (QCD) from your IRA, which counts toward your RMD and offers tax benefits. If you’re considering a larger gift, or have significant taxable gains to offset, a Donor Advised Fund may be a wise choice.

Deadline: Dec. 31, 2024

5. Explore Roth Conversions or Backdoor IRAs

If your tax bracket is lower than usual, it might be a good time for a Roth conversion. This involves moving money from a traditional IRA to a Roth IRA, which is a taxable event, so it grows tax-free in the future. High earners can also look into a backdoor Roth IRA strategy to access these benefits. However, the pro-rata rule may negate most of these benefits if you already carry a balance in a traditional IRA.

Deadline: Dec. 31, 2024

6. Use Up Your FSA Funds

If you have a flexible spending account (FSA) through your employer, check your balance. Many FSAs follow a "use it or lose it" rule, so be sure to spend any remaining funds on eligible healthcare or childcare expenses. If you have an HSA, the balance carries forward every year, and may even be invested for tax-free growth.

Deadline: Dec. 31, 2024

7. Review Your Estate Plan

It’s always a good idea to review wills, trusts, and power of attorney documents every few years, or meet with an attorney to implement them if you have been putting it off. This is especially true if there have been any significant life events recently. It is also important to double-check your beneficiaries on retirement plans, investment accounts, and insurance policies. Many people don’t realize that beneficiary elections typically supersede a will, which can lead to costly oversights if not updated regularly.

8. Reflect on Your Financial Goals

The end of the year is a great time to step back and assess how you’re doing. Are you on track with your financial goals and current plan? Do you need to adjust anything? Are there new goals you want to set for next year?

Let’s Finish 2024 on the Right Foot

We can help you check all these boxes, answer any questions, and achieve success in 2025.

Being intentional with your finances now, will set you up for a smoother, more secure future. If you’d like help reviewing your finances or tackling this list, give us a call. We’re here to make sure you start the new year on solid ground.

We hope you have a blessed Christmas and New Years!

Investment advice is offered through Belpointe Asset Management, LLC. 500 Damonte Ranch Parkway, Building 700, Unit 700, Reno, NV 89521

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.