You have two months to close out 2023. Here are the easiest things to focus on to end the year strong.
CASH
If you have more than $30,000 sitting in cash at the bank, this isn't efficient. Buy a 1-year CD or invest any excess.
PORTFOLIO
Have you taken your Required Minimum Distribution from your IRA, 401(k), or Inherited IRA?
Look for Tax Loss Harvesting opportunities in your taxable account. If you work with me, ignore; already being taken care of.
CONTRIBUTIONS
You can max out your 401(k) plan at $22,500 (under age 50) or $30,000 (age 50+).
If your health insurance plan is HSA Eligible, employee + employer contributions can max out at $3,850 for individuals and $7,750 for families. Folks 55 and older can tack on an additional $1,000.
Did you make your IRA/Roth IRA contributions? Max this year is $6,500 (under age 50) or $7,500 (age 50+).
INSURANCE
Use your FSA balance if you haven't already. Usually, these are use it or lose it accounts.
Have you met or are close to your health insurance deductible? If yes, go visit with that specialist you've been putting off.
If under age 65, are you enrolled in a high deductible health plan for 2024? Strongly consider it for the HSA integration.
If you're 65+, are you renewing your Medicare plan or shopping for something new?
TAX
Have you examined the validity & benefits of a Roth conversion? Hint- I can help with this if you're a client or not.
If you donate to charity or tithe, quit writing checks. Donate appreciated shares straight from your brokerage account or execute Qualified Charitable Distributions (works only for folks 70.5+).
Have you withheld enough from your paycheck, pension, or IRA distributions to meet the Safe Harbor Threshold so you don't get penalized?
COLLEGE
If you live in a state with income tax, consider gifting cash to a college savings 529 plan to receive a state tax deduction.
If you took money out of a 529 plan to pay for school, did you save your Qualified Education Expenses receipts?
This is a simple, generic list. A few of these probably apply to your finances. There are also strategies not mentioned above that you'd likely benefit from.
This list is just a starting point.
If you're not sure if you've done all that you can to get organized this year, reach out to your financial advisor before the holidays kick into high gear.