'Tis The Season: Year-End Planning Reminders - Carroll Financial
November 25, 2019

‘Tis The Season: Year-End Planning Reminders

Carroll Financial Year-End Planning Reminders

Author: Kristopher W. Carroll, CFA®, CFP®


Before things get busy with the holiday season, we wanted to send you a list of things to think about as we near the end of the year:


Gifts and Charitable Donations
Are you thinking about making additional gifts to family or charitable donations in 2019? If so, please let us know as soon as possible. Once we have the paperwork in hand, transfers are typically completed within two to three business days. Given the high volume of gifts around the holidays, we need to have the paperwork by December 20th at the latest to ensure that the transfers happen before the end of the year. If you are over the age of 70½, you should also consider ways to make charitable donations directly from your retirement accounts.


Capital Gains and Tax-Loss Harvesting 
Do you have large gains or losses outside of your accounts with Carroll Financial? If not, there is nothing you need to do. If you do, please let us know because this might be a good time to take some additional gains or perhaps harvest some losses.


Tax Loss Carryforwards 
Have you let us know about any tax loss carryforwards? If not, please let us know so we can note them and take these into consideration when we review your accounts.


Income Planning 
How is your money working for you? The end of the year is a great time to review your spending and create a budget for the upcoming year. Not everyone likes using budgets, but often reviewing your spending can bring to light ways to save. It’s also helpful to review your withdrawal rate with your advisor to make sure it is in line with your long-term goals.


Beneficiary Designations
Have you reviewed your beneficiary designations this year? Make sure your current designations are still in line with your estate plan and give us a call if we can help you make any related changes.


Required Minimum Distributions (RMDs)
Have you taken your 2019 RMD? If you’re 70½ or older, you’re required by the IRS to take RMDs from certain retirement accounts by December 31st or face a penalty equal to 50% of the sum that was not withdrawn. We do our best to make sure that these distributions are made given the penalty consequences.


Roth Conversions
December 31st is the deadline to complete a Roth conversion. Remember that there are no income limits to completing a Roth conversion. While you may be paying ordinary income taxes on the money now, you will not have to pay taxes on the money converted in the future.


Medicare Open Enrollment
Do you need to enroll in Medicare? The 2020 Open Enrollment Period runs from Tuesday, October 15th to Saturday, December 7th, 2019. If you do not act by December 7th, you will not be able to get 2020 coverage unless you qualify for a Special Enrollment Period. Plans sold during Open Enrollment start January 1st, 2020.


Bottom Line: If you have questions or would like to talk about any of the items above, give us a call. We’re here and happy to help as you prepare for the end of 2019.

Estate Planning, Retirement Income, Saving, Tax Planning
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