By Tony Delane, CFP®, AIF®, Associate Wealth Advisor
As we all know, the fiscal tax year end date is December 31, 2024. As the year draws to a close, it’s important to stay on top of your tax planning to help ensure a smooth and stress-free filing season. Here are three tax tips to help you stay organized and make the most of your financial opportunities before the end of the tax year.
1. Complete Required Minimum Distributions (RMDs) and Evaluate Qualified Charitable Distributions (QCDs).
If you’re required to take minimum distributions from your retirement accounts, make sure you have handled your annual distribution from all necessary accounts. Failing to do so can result in hefty penalties. Additionally, if you’re charitably inclined, consider making a Qualified Charitable Distribution (QCD) directly from your IRA to a qualified charity. This can help satisfy your RMD requirement while also reducing your taxable income.
2. Address Tax Strategies with a December 31st Deadline.
Year-end is a busy time for people both personally and professionally. There are certain tax strategies that must be implemented by December 31st to qualify for the 2024 tax year. Two such strategies we often see are Roth Conversions and contributions to a Donor Advised Fund. These strategies can provide significant tax benefits, but they require timely action. We encourage our clients to take action early rather than wait too long and risk missing a deadline.
3. Prepare for Tax Filing Season Early.
Ensure that your addresses and online logins for financial accounts are up to date. Keep track of itemized deductions, such as medical expenses, charitable contributions, and mortgage interest. Organizing these documents now can make the filing process much smoother and help you avoid last-minute scrambling.
Get Ahead with Proactive End-of-Year Tax Planning
By taking these steps, you can stay organized and make the most of your tax planning opportunities. Proactive tax management can help you avoid penalties and help maximize your potential savings, potentially setting you up for a financially healthy new year
Disclosure:
Halbert Hargrove Global Advisors, LLC (“HH”) is an SEC registered investment adviser located in Long Beach, California. Registration does not imply a certain level of skill or training. Additional information about HH, including our registration status, fees, and services can be found at www.halberthargrove.com. This blog is provided for informational purposes only and should not be construed as personalized investment advice. It should not be construed as a solicitation to offer personal securities transactions or provide personalized investment advice. The information provided does not constitute any legal, tax or accounting advice. We recommend that you seek the advice of a qualified attorney and accountant.
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