Top 12 Tips: A Year-End Financial Checklist

Top Twelve Tips: A Year-End Financial Checklist
Find time for your financial health in your holiday plans.

The end of the year always seems to sneak up on us. After Thanksgiving, the buzz of the holiday season keeps us busy through the New Year and tax season probably isn’t even a distant thought yet. But, there are a number of reasons to make year-end financial and estate planning a priority, because when the year turns over there’s no going back.

Here are twelve valuable tips for making sure you take action if needed before the end of the year and head into next year feeling confident about your financial health:

1) Check your Flexible Spending Account balance. If your employer plan does not allow rolling money over into the next year, make sure you spend the balance on qualified expenses so you don’t lose out.

2) Take your Required Minimum Distribution. If you don’t take your RMD from accounts that require it, you could be subject to penalties and taxes.

3) Make a qualified charitable distribution. If you make a QCD from your IRA, you may reduce the amount of tax owed.

4) Prepay charitable gifts. Thinking ahead about next year’s charitable gifts may allow for a larger tax deduction this year, if you pay out the money this year of course.

5) Select next year’s employer benefits. Open enrollment is typically in December if you’re employed. Consider taking advantage of all available options, including a flexible spending account, health savings account, life insurance and more.

6) Review 401k and IRA contributions. Maximizing the amount you contribute takes advantage of available tax deductions and employer matching contributions.

7) Consider a Roth conversion. If you’re unable to contribute to a Roth IRA directly because you don’t qualify, you may benefit from contributing to a Traditional IRA, then converting the funds to a Roth IRA.

8) Review any tax losses. If you have losing stock positions, consider selling them to offset gains and reduce taxable income. Remember the IRS only allows $3,000 of losses per year.

9) Plan for life events. A job change, home or car purchase, surgery or other life event requires financially planning ahead, if possible.

10) Review your estate plan. Ensure your overall estate plan, including your will, trust and health care power of attorney, are current.

11) Review insurance policies. Review your home, auto and life insurance policies to determine if you have enough coverage or if deductibles need to be adjusted.

12) Review your beneficiaries. Double-check that changes or updates are not needed on your accounts. It’s all too common to leave an ex-spouse, for example, assigned accidentally.

The most important decision you can make as the year comes to a close is to speak with a financial professional to ensure everything is in order with your overall financial situation. There is still time left in the year to take action if needed, but time is running out.

If you would like a year-end review of your financial situation, or if you have questions regarding year-end strategies, contact the team at Bayntree Wealth Advisors at or 480-494-2750.

Bayntree Wealth Advisors, located in Phoenix and Scottsdale, Arizona, provides comprehensive financial planning and wealth management. The Bayntree team specializes in all aspects of financial health, including retirement planning, risk management, investment advice, tax strategies, estate planning and insurance.

Bayntree does not provide specific legal or tax advice. Please consult with your tax advisor or legal professional for guidance with your individual situation.

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