I don’t know about you but it’s hard to believe we’re about to wrap up 2023.
I put together a quick year-end post for several planning items to think about now or into next year.
- 401(k)/Retirement Plan Contributions – If you are able, make an additional contribution by 12/31. Can you increase your contributions next year? Even 1-2% helps! The same can apply to Solo 401(k)s or other type of employer plans if your company doesn’t offer a 401(k) plan.
- Flex Spending Account (FSA) – If you have money in these accounts, it needs to be spent by 12/31.
- 4th Quarter Estimated Tax Payments – These are due 1/15/24. Put it on the calendar now so you don’t forget. Check with your CPA if needed.
- Cash Flow Projections for 2024 – This is a great task to work on in December.
- SEP IRA Contributions – If applicable to you, these are not due until 4/15/24 (or later if you extend your tax return).
- 529 Plan Contributions –As with the 401(k), can you make an additional contribution by 12/31? Can you increase your contributions next year? If you have not run updated college projection costs lately, now is the time to do so.
- Charitable Donations –Do you need to make any charitable contributions before year-end? This includes non-cash donations such as appreciated stocks or funds. If you are older, you also may take advantage of Qualified Charitable Distributions (QCDs) from your IRA.
- Traditional and Roth IRA Contributions – Consider making these now if you can (and are eligible) even though they are not due until 4/15/24.
- Tax Planning – Check in with your CPA/accountant for any tax projections or other planning items for next year.
- Review Beneficiaries – December is a good time to review all your accounts to ensure your beneficiaries are listed and up to date.
I’ve also included this 2024 Key Financial Data Guide for easy reference. It has many key items that can help with personal finances, including tax brackets, thresholds, limitations, exemptions, and more.
Also, December doesn’t have to be all about investments and finances, find some time to relax, grab coffee or lunch with friends, or check out some new shows/movies/books.
I’ll have another post coming in the next few weeks to look back on my 2023 personal financial goals and outline some for 2024.
If you want to discuss any of the above with me in more detail, please reach out.
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