4Q: A few year-end reminders
As the year begins to draw to a close, it’s a good idea to take stock of your financial health, including your investments and estate plan. Below are 7 important items to consider to set a solid foundation for the year ahead.
401(k) contribution limits and deadlines. For most 401(k) plans, the deadline to contribute is December 31, 2024. This deadline also applies to participants who are 50 or older at the end of the calendar year 2024.
IRA contribution limits and deadlines. You can make 2024 contributions to your Roth or traditional IRA until April 15, 2025.
Required minimum distributions (RMDs). Remember that you face an excise tax on any RMD that you fail to take on time. You must calculate the RMD separately for each IRA that you own other than any Roth IRAs, but you can withdraw the total amount from one or more of your non-Roth IRAs.
Revisit your current income needs. If you rely on your investment portfolio to partially or fully support your lifestyle, you may want to visit with your financial advisor to estimate the cash flow your portfolio is expected to generate next year. If any other sources of income were disrupted last year, you might also want to talk about modifying your overall financial plan.
Review your estate planning documents. Take a look at your will, health care power of attorney, advanced medical directive, and general power of attorney to make sure all names are up to date and they reflect your wishes.
Review your beneficiary designations. Beneficiary forms often supersede will and trust directives in court, and not updating them is a common (and potentially expensive) mistake. It is a good idea to review and update them each year.
Revisit your charitable giving strategy. If you’re giving intentionally, rather than reactively, you can have a bigger impact on the causes you care about most. Factors to consider: gifting appreciated assets “in-kind,” family gifting before year-end, Qualified Charitable Distributions (QCDs), and establishing a Donor Advised Fund (DAF) account. Visit with your financial advisor for more information on these topics.