Ho! Ho! Ho! The end of the year is quickly approaching, and Santa will be here before you know it! As you’re making your financial list and checking it twice to prepare for a new year, consider:
- Are you or should you consider contributing to a College Choice 529 Plan? Indiana taxpayers can get a state income tax credit equal to 20% of their contributions, up to $1,000 per year. The deadline for making 2022 contributions is December 31.
- Have you taken your Required Minimum Distribution (age 72) from your Retirement Account(s)? Remember, there is a 50% penalty on any portion that hasn’t been satisfied by December 31.
- Ever thought about making a Charitable Distribution? By making a Qualified Charitable Distribution (QCD), you may reduce the amount of taxes owed. You may be able to donate your Required Minimum Distribution to the charity of your choice (or a portion of it) and not have your adjusted gross income affected, depending on age. These funds need to go to the charity directly from your retirement account. You may donate up to $100,000.
- When was the last time you reviewed your 401K and IRA contributions? By maximizing the contributions, you benefit from compounded interest year after year. Keep in mind investing is a marathon, not a sprint.
- Anything major or life changing that you’re aware of for 2023? Planning any big purchases? Preparing for retirement? Getting ready to change jobs? Will you be relocating? Are you planning for a wedding? Saving for surgery? Planning ahead will help reduce stress when the time comes.
- Have you updated or do you have an estate plan? Have you heard the saying that if you don’t have a plan for your life, someone else will? Do you have beneficiaries on your investment accounts? Do you have a Will or Medical Proxy? Life can throw curveballs; be prepared.
- Look at your insurance policies to make sure they are up to date. Has the Fair Market Value gone up on your home? If so, make sure you have enough homeowner’s insurance. What about life insurance? Have you reviewed your auto insurance recently?
At SBC, we help keep you on the path to financial success through careful planning and preparation. We are passionate about helping you reach your financial goals. As the end of the year approaches, please keep the above things in mind. Reach out if you need help in planning—we’re here for you!