As the year starts to wind down, the fall is a great time to check in on your finances and make sure you are ready for important deadlines. The last few months of the year can go by quickly, and it’s easy to put off financial tasks until it’s too late. Taking care of them now can help you avoid stress and feel more in control of your money. Here are a few year-end financial planning tips to take on this October and November.
Year-End Financial Planning Tips for the Fall
Increase Retirement Contributions Before It’s Too Late
Some financial steps take time to process, so acting early can take off some pressure. For example, if you plan to contribute to a retirement account, such as a 401(k) through your employer, it can take a few pay periods to increase your contributions. If you wait until December, you may not have enough time to reach your yearly goal. Making adjustments now gives you a better chance of meeting your savings target by the end of the year.
Don’t Miss Your Required Minimum Distribution (RMD)
Another key area to think about is your required minimum distribution, or RMD. If you are over a certain age (typically age 73) and have a retirement account like a traditional IRA or 401(k), you are required to take out a minimum amount of money each year. If you miss the deadline, there can be a large penalty. It’s a good idea to check in with your advisor or financial planner in October to make sure this is on track.
Plan Charitable Donations for a Year-End Tax Benefit
Charitable giving is also something to consider before the year ends. If you plan to donate to a cause that matters to you, doing so by December 31st may allow you to receive a tax benefit. Some donations take longer to process, especially if they involve assets like stocks, so getting started early can help everything go smoothly.
Use Your FSA Funds Before They Expire
You might also want to review your flexible spending account, or FSA, if you have one. Many FSAs have a use-it-or-lose-it rule. That means any money left in the account at the end of the year could be lost. Check your balance and see if there are any medical or health-related expenses you still need to take care of.
Review Your Financial Goals Before the Holidays
The fall is also a good time to look over your financial goals for the year. If you planned to pay down debt, build up savings, or stick to a budget, now is your chance to measure your progress. If you’ve fallen behind, you still have time to make changes and finish the year strong.
Get Ahead Now for a Stress-Free December
It can be easy to put off these tasks, especially when the holidays are approaching and schedules get busier. But by checking in on your financial plan now, you give yourself more options and fewer surprises. A little planning in October and November can lead to a more peaceful and financially healthy start to the new year. At DeSantis, Kiefer, Shall and Sarcone, our financial experts can help you with all your year-end financial planning needs this fall to set you up for success when the year comes to a close.
