Happy fall to all! Here in Casper, we have had a great October weather-wise, and I've gotten to continue swinging the golf club all month. I'm hoping to play again this weekend before the weather turns but then I'm sure it will be time to hang up the clubs until spring. With November around the corner, it's the time of the year when we are looking at our year-end tasks as it relates to the portfolio and client accounts. On our end we are looking through the portfolios and watching for capital gains distributions from mutual funds and client-specific tax situations that might require some portfolio tweaks. Because of that, I thought I would pass on a list of housekeeping items that you might consider before year-end. Keep in mind that not all of these items will apply to your situation but it's a good idea to review them and make any necessary adjustments before January 1st.
Required Minimum Distributions {RMD) from Traditional IRAs and Inherited IRA
- Traditional IRA RMDs
- You must begin taking these at age 73
- We have a list and are keeping track (contact us if you have a question about your RMD)
- Inherited IRAs
- If you inherited an IRA prior to 2020 you will have an annual required distribution.
- If you have inherited an IRA after 2020 you have 10 years to withdraw the full balance of the account
- Annual minimum distributions are not required
If you have that account with our firm, we are tracking them and will be contacting you to complete this if you have not done so already.
Tax Loss Harvesting and Capital Gains
- We are looking at these on an individual basis and will contact you if we think there is an appropriate action to take.
- Please inform your advisor if you have a loss carryforward from a previous year as it does give us more flexibility in managing your portfolio.
Charitable Giving
- Consider gifting appreciated securities to a qualified 501c3 charitable institution as opposed to cash. You can potentially avoid capital gains if you gift the investment directly to the charity. Because the entity is a qualified charity, they can sell the investment without the capital gains tax that you would pay if you sold in your own account. Seek the advice of a qualified tax professional for further questions.
- If you are over 73 you may be able to gift your required minimum distribution and avoid income tax.
Seek the advice of a qualified tax professional regarding your unique situation.
Miscellaneous
- 529 Account Contributions must be made by December 31 to receive credit for 2024.
- Health Savings Account (HSA) contribution deadline is December 31.
- Don't wait until December 26 to complete any 2024 distributions. With Holidays and weekends, you might not make it in time! Please contact our office by early December to ensure you have completed these items before year-end.
If you have any questions about your portfolio please contact your financial advisor.
