Year-End Planning (2024)

It's hard to believe that 2024 is almost over. The end of the year is a very busy time for everyone. It's especially busy for us as we're wrapping up year-end tax and planning items. With only 6ish weeks left in 2024, we wanted to send you a list of things to think about as we near year-end:

Required Minimum Distributions (RMDs)

If you are required to take a distribution this year and haven't already, you will need to do so by the end of the year. If you are required to take a distribution from an account with us and haven't already, we'll be contacting you shortly. Remember, the current required RMD starting age is 73. If you turned 73 in 2024, you'll need to take a RMD that is based on the total amount of your pre-tax assets in retirement accounts (IRAs, 401k, 403b, etc.)

Gifts and Charitable Donations

Are you thinking about making additional gifts to family or charitable organizations in 2024? If so, please let us know as soon as possible. Once we have the paperwork in hand, transfers are typically completed within 2-3 business days. Given the high volume of gifts around the holidays, we need to have the paperwork by December 20th at the latest to ensure that the transfers happen before year end. If you are having to take RMDs, you should also consider ways to make charitable donations directly from your retirement accounts.

Capital Gains/ Tax-Loss Harvesting / Tax Loss Carryforwards

We will be reviewing all taxable accounts to see if any changes are warranted. Do you have any tax loss carryforwards? If not, please let us know so we can note them and take these into consideration when we review your accounts.Income PlanningHave you reviewed your budget and/or thought about spending for 2024? The end of the year is a great time to review your spending and create a budget for the upcoming year. Often times reviewing your spending can bring to light ways to save. If you’re retired, it's also helpful to review your withdrawal rate to make sure it is in line with your long-term goals.  Creating a budget for the upcoming year can also help us design an income plan for you in the most tax efficient way possible.

2025 Retirement Contributions

The IRS recently released the retirement plan contribution limits for 2025 (https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000) One significant change was made thanks to SECURE 2.0. Now, there is a higher catch-up contribution limit for employees aged 60, 61, 62 and 63 who participate in most retirement plans. For 2025, this higher catch-up contribution limit is $11,250 instead of $7,500 for those over 50. Now is a great time to be thinking about 2025 contributions and having a plan in place to update your contributions so you can take advantage of these new contribution limits starting early in 2025. 

Beneficiary Designations

Have you reviewed your beneficiary designations this year? Make sure your current designations are still in line with your estate plan and give us a call if we can help you make any related changes.

Roth Conversions

The Tax Cuts and Jobs Act (TCJA) with its lower tax brackets and larger standard deduction, will go away at the end of 2025 unless new legislation is passed to extend it. Because of this, we are having lots of conversations about Roth conversions. December 31st is the deadline to complete a Roth conversion so let us know if you would like to discuss whether or not this makes sense for your situation.

Medicare Open Enrollment

Do you need to review or make changes to your existing coverage? The 2024 Open Enrollment Period runs from October 15th to December 7th. 

Bottom Line: If you have questions or would like to talk about any of the items above, give us a call. We're here and happy to help as you prepare for the end of 2024.

As always, please let us know if you would like to discuss this in more detail. 

Thank you for the opportunity to serve you and your family.