top of page

Financial Planning Tip October 2023

If you blinked you may have missed it, but 2023 is rapidly drawing to a close. With only a few months left in the year, now is the time to confirm you've met your obligations and seized your opportunities before the ball drops on December 31.

• We will be in touch about your IRA minimum distributions in October and November. Remember these are taxed at your regular income tax rate and plan accordingly.

• Consider which charities you'd like to support. Donating appreciated stock is a great way to support charities and reduce taxes. If you're interested and think you may be a candidate for this type of giving, please get in touch.

• Combining the two points above, a qualifying charitable distribution (QCD) allows investors over age 70½ to give IRA distributions directly to a charity. This can potentially reduce both taxes and Medicare premiums for the upcoming year.

• If you've experienced any unusual financial events this year -- a large capital gain, home sale, new job or line of business, to name a few -- take a few minutes to discuss the matter with your tax preparer. There are practically no tax deadlines between October 15 and December 31, so your accountant is likely to have ample time for a conversation.

• Contribute as much as you can to your 401(k) or SIMPLE-IRA. Contribution limits are $22,500, and $15,500, respectively. For those over age 50, limits are $30,000 and $19,000, respectively. While you're at it, rebalance your retirement account if you don't do this regularly. Call us if you'd like assistance with this.

• If you have a flexible spending account (FSA) at work, try to use all the funds. Unlike a health savings account (HSA), FSA funds don't roll forward to future years. Schedule that visit with the eye doctor or dentist you've been delaying.

• Think a bit about 2024. If you're expecting to earn significantly more (or less) in 2024, it probably makes sense to shift the date for some of these actions. Someone selling a business in 2024, for example, may choose to double up charitable donations in 2024 in order to maximize the tax deduction in that year.


bottom of page