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Year-End Planning

Retirement Plan Basics

With the end of 2021 quickly approaching, there is still time to take advantage of many tax planning opportunities for this year. Below are several planning ideas that may be applicable to you and your family. Please reach out to us to discuss how you can implement any of these strategies, and others, into your financial plan for 2021.

  • Charitable Contributions: You have 2.5 months left to make charitable donations this year. A few additional reminders regarding contributions for 2021:
    • If you do not itemize deductions, you can take a $300 ($600 for joint filers) charitable contribution in addition to the standard deduction
    • Consider gifting directly from your IRA if you have required minimum distributions.  The charitable donation reduces dollar for dollar the taxable amount of your RMD (up to $100,000)
  • HSAs: Be sure you are contributing the maximum amounts - $3,600 for self-coverage or $7,200 for family coverage – if eligible.
  • Annual gifts: individuals can gift up to $15,000 per person to any individual for the 2021 year and not have a reportable tax gift to the donor or recipient
  • Roth Conversions: review whether it makes sense for you to convert any of your pre-tax dollars to Roth this calendar year
  • Retirement plan contributions: review your year-to-date contributions to your retirement plans to ensure you are contributing the maximum amount allowed this year
  • Withholdings and estimated payments: Be sure and review your paycheck withholding amounts and / or any estimated tax payments for the year to ensure you are on target to avoid any interest and penalties

We are also closely monitoring the proposed tax changes in Washington and will be communicating changes once finalized and how they may impact you. If you have any questions about year-end planning or would like to schedule a time to discuss any aspect of your financial plan, please reach out to us to schedule a time.

IMPORTANT DISCLOSURE INFORMATION

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