End of Year Checklist
November 7, 2024
The days are growing shorter and there are not many pages left on that 2024 calendar. This is the time of year to prepare for all that 2025 has to offer. It is important to take a final look at what you can do financially to help your future self.
With a bit of thought and foresight, small actions now make a considerable difference farther along in your journey. So, before you settle into “holiday mode”, you should consider1:
- Max Out Retirement Contributions: You can continue to fund SIMPLE or SEP-IRA employer plans until December 31. Contributions to traditional and Roth IRAs for 2024 can be made until the April 2025 tax-filing deadline.
- Take Required Minimum Distributions: A penalty of up to 25% of your RMD can be levied if the minimum is not withdrawn in time.
- Tax-Free Savings: Converting to a Roth IRA allows tax-free growth and distributions once requirements are met. If you are building towards retirement and plan to hold an IRA for at least five years until you reach the age 59 1/2, this strategy may reduce your tax bill in retirement.
Even if everything looks good on paper, it is worth routinely checking in with an experienced financial professional to get assistance with optimizing your personal plan. Contact us today to schedule your complimentary consultation.