5 Year-End Financial Moves to Make Now
1) Donate to your Favorite Charity
December is a great time to make a donation to your church, charity or any other non-profit organization of your choosing. Not only will your donation be impactful to the charity, the donations will also be impactful come tax time by lowing your current tax bill. Be sure to keep your donation receipts and report all donations when filing your tax return.
2) Max out your 401K
If you didn't put the maximum amount allowed under Federal
Law into your 401(k) or 403(b), December is your last chance to
add more, if possible. The contribution limit for 2019 is $19,000, an additional $6,000 may be contributed for those 50 and older. If your budget doesn't allow you to contribute more now, consider increasing your monthly contribution for next year. In 2020 the contribution limit is increasing to $19,500 with a $6,500 catch-up for those 50 and older.
3) Review your Investment Allocations
With a year of market gains in the rearview, now may be a good time to rebalance your portfolio back to its original allocations or make allocation adjustments for the year ahead. Work with your financial advisor to help determine your most appropriate portfolio allocations.
4) Take your Required Minimum Distribution (RMD)
If you are 70 ½ or older you must take your annual RMD from your IRA, 403(b) or 401(k) before year end. Roth IRA's and Roth 401(k)'s are exempt from having to take this annual distribution.
5) Update your Estate Documents and Beneficiary Information
Did you have any major life events in the past year? Now would be a good time to revisit your estate documents and beneficiaries
to make sure they are all up to date and accurate.
Cornerstone Wealth Management
486 N.W. 2nd Avenue
Canby, OR 97013
Securities and advisory services offered through
LPL Financial, a registered investment advisor.
This information is not intended to be a substitute
for specific individualized tax advice. We
suggest that you discuss your specific tax issues
with a qualified tax advisor.
Rebalancing a portfolio may cause investors to
incur tax liabilities and/or transaction costs and
does not assure a profit or protect against a loss.