As we approach the holiday season and end of year, now is the time to start thinking about how to close out the year strong, financially. There are some tax considerations, as well as some financial planning ideas which you would be wise to think about now! Here are five items to check off your financial checklist in November:
1) Don’t forget your RMD
You generally have to start taking withdrawals from your IRA, SEP IRA, SIMPLE IRA, or retirement plan account when you reach 72 (70-1/2 if you reach 70-1/2 before January 1, 2020). The IRS requires a yearly distribution. This is called the required minimum distribution, or RMD. This is a taxable distribution. If you aren’t sure what your RMD is for the year or how much to withhold for taxes, you may want to consult with a financial advisor.
2) Save on holiday shopping
Whether it’s Black Friday or Cyber Monday, there are lots of deals to be had during the holiday season. Maybe you are the type who likes to sleep in a tent in a parking lot on Thanksgiving night to get the Black Friday door buster deals, or maybe you’re the type who prefers to stay far away from crowds and shop online from the comfort of your own home. Regardless of your shopping preference, if you have your Christmas lists ready and a plan in place, you can experience major savings on your shopping list if you indulge on one of these two days.
Additionally, it helps to make a plan and set a budget. Make a list of everyone you need to shop for, then budget in a little extra for someone whom you may have forgotten.
3) Have a year-end tax plan
As we close out the year, are you sure about your tax plan for 2022? Ignorance is not bliss when it comes to tax season. Tax surprises are rarely fun. Now is the time to get with a professional and do some tax projections while you still have time to put strategies in place to minimize your tax liability for 2022.
4) Spend down that Health Flexible Spending Account (FSA)
As you may know, if you have an FSA through your work, you may have allocated a certain amount of pre-tax dollars to be spent specifically on healthcare costs. These are typically “use it or lose it” DOLLARS…. in a calendar year which means you have to spend it by December 31 or you’ll lose the funds.
5) Give thanks!
The final item on ATLED’s November financial check list, is to give thanks! As we approach the craziness of the holiday season, it can be easy to forget to pause and reflect back on our many blessings. Here at ATLED, we look back over the past year and are grateful for many things! Most importantly, we are grateful for our many clients whom we have the pleasure of serving.
Connect with Delta Jones-Walker and Atled Financial on Facebook, Twitter: @Atled_Financial and LinkedIn! To schedule a free consultation or a presentation to your group or organization, call 219-513-3710 or email [email protected] and mention this column. Topic ideas for this column are welcome!
Securities and investment advisory services offered through Woodbury Financial Services, Inc. (WFS) member FINRA/SIPC. WFS is separately owned and other entities and/or marketing names, products or services referenced here are independent of WFS. Insurance services offered through Atled Financial Group 3801 Ridge Road. Highland, IN 46322.