Navigating Year-End Tax and Retirement Planning: A Comprehensive Checklist for Financial Success in 2024

With the October 15 tax deadline passed, it is now the best time for tax and retirement planning. As 2024 wraps up, it is important to reflect on the year and make changes to financial matters. Here are some key considerations for year-end tax and retirement review:

1. Tax-loss harvesting: Analyze your portfolio to offset taxable income by harvesting capital losses and utilize any tax-loss carryforwards.

2. Contribute to pre-tax retirement accounts: Ensure you are maximizing contributions to accounts like 401(k)s, 403(b)s, and SIMPLE IRAs, with an extra catch-up amount available for those age 50 and older.

3. Convert traditional IRA to Roth IRA: Consider converting to a Roth IRA, which is exempt from required minimum distributions and offers tax-free withdrawals, by December 31.

4. Reassess risk tolerance: Life and career changes may impact your risk tolerance, so it is important to adjust your portfolio accordingly.

5. Review required minimum distributions (RMDs): If you turn 73 this year, remember to begin taking RMDs by April 1 of the year following your 73rd birthday to avoid significant taxes.

6. Make charitable contributions: Maximize charitable impact while minimizing taxes with strategies such as donating appreciated stock, using qualified charitable distributions, or opening a donor-advised fund.

7. Fund investing accounts for dependents: Consider contributing to custodial Roth IRAs or 529 college savings plans for your children.

8. Stay disciplined regardless of election outcomes: Avoid reacting emotionally to market volatility during an election year and focus on maintaining a diversified portfolio to achieve long-term investment goals.

It is essential to work closely with your tax accountant and financial adviser to navigate these year-end financial tasks based on your unique situation. Remember to stay informed and proactive to optimize your tax and retirement planning efforts.