Broker Check

End-of-Year Planning Reminders

| October 25, 2017

 “Time moves slowly, but passes quickly” - Alice Walker 

 As winter approaches, it’s again time to look at end-of-year planning that is important to do now before the holidays take over. Here are some key things you may want to take a look at today:

IRA contributions – Review your income to make sure that the contributions you make are:

  1. Deductible – If you have made more than you expected this year and have been contributing to a Traditional IRA, you may not be able to deduct the full amount. Keep in mind you can still contribute up to the maximum amount ($5,500 + $1,000 if 50+), even if you cannot deduct the amount on your tax return.
  2. Allowed – Roth IRAs have a similar phase-out, however if you have Adjusted Gross Income over $186,000 joint ($118,000 single) the amount you are allowed to contribute is reduced. If you planned to earn less than this and have been contributing to a Roth IRA monthly, but this year has been particularly prosperous, there are options to prevent any penalties, which I am happy to discuss with you.

Retirement Plan Contributions – Are you on track for your savings goals? Did you get a raise or a bonus, but fail to increase your retirement contributions? You have until December 31st to increase or maximize your employee deferrals effective for this year. There may be options to contribute after-tax dollars to your retirement plan. Feel free to contact me and we can discuss your options to get the most out of your qualified plan.

Flexible Spending Accounts (FSA) – Some employers use November 30th as the end of their FSA plan year, while others use a calendar year. In either case, now is the time to schedule those appointments or stock up on approved medical supplies to avoid the “Use-It or Lose-It” rule. Also, discuss the FSA with your employer to see if your plan allows you to rollover up to $500 to the following year, as this is now allowed by law and common among many plans.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. No strategy assures success or protects against loss. Investing involves risk including loss of principal.