Year-End Tax Reminders
Need a last minute gift for the hard to shop for person……how about some year-end tax tip reminders!
Manage your Capital Gains and Losses –
- Talk to your broker/investment adviser to get an estimate of gains and losses, including projected taxable
- Review any potential sales before year end to take advantage of the capital gains o Review any potential stock option plans.
Year-end Charitable Contributions –
- Donations prior to year-end can help reduce o Donor-advised funds may be a great alternative.
- Planning for 2020 donations using retirement accounts starts
Retirement Planning –
- 401(k) limits are $19,000 per year for 2019 ($25 000 if you’re over 50 years old) but planning for future rates should lie addressed when deciding on maximizing
- Required Minimum Distribution (“RMD”) rules HAVE NOT (yet) changed so if you’re turning 70 ½, remember to take your distributions prior to 12/31 (if you miss it act quickly to allow for relief).
- Conversions to ROTH from Traditional accounts must be done prior to 12/31.
Education –
- WI 529 Plan contributions are due by 4/15/2020 in order to receive a tax
- Qualified expenses for Federal and State education tax credits include tuition but also other “related” Don’t forget to include documentation.
Medical –
- Don’t forget to fund your HSA by 12/31/19 if your health plan allows for
- Long-term care insurance has special deduction limits so don’t forget to break out those amounts for the best tax
Don’t hesitate to contact RPB to see how we can help you continuously be in front of any planning situations. Best wishes for the New Year.