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It’s hard to believe we’re in the final month of 2024, each year seems to move just a little faster than the last. Perhaps this is a sign of age! Nevertheless, it’s a great time to be thankful and to be sure the boxes have been checked on planning opportunities. As you may know, once we roll into 2025, some opportunities will be forfeited. Let’s look at a few while considering how they might fit into your financial plans for 2024:
- Funding your HSA account/Spending FSA dollars.
A Health Savings Account is often overlooked despite its planning power. All contributions are tax-deductible, but they must be funded before year-end to lower your tax burden for 2024. If you don’t have an HSA, it’s possible that you have an FSA. If so, now is the time to get that new pair of eyeglasses, load up on baby supplies (which could be a great gift!), or visit your dentist. Whatever the case, don’t forget that FSA funds are “use it or lose it”. So, if you have a balance don’t forget to spend those dollars before December 31. If you need ideas on how to use your FSA, check out this link to an article with 15 ideas for leftover FSA dollars. https://www.cnbc.com/2020/12/15/15-surprising-things-you-can-buy-with-your-leftover-fsa-dollars-.html
- Maximizing 401(k) and other Qualified Retirement Vehicles.
Be sure to confirm that you’ve maximized employer-sponsored plans. As a reminder, the maximum contribution for 2023 in a 401(k) plan is $23,000 and if you’re over 50, you can contribute an additional $7,500 for a total of $30,500. You can defer up to 100% of your paycheck in some cases. There is still time to change your deferral for the final pay periods of 2024 to maximize your contributions.
- Charitable Giving.
Christmas is a wonderful reminder to help those in need. If you’ve been planning to donate to charitable organizations, doing it now can reduce your 2024 tax bill. Remember to keep those receipts and share them with your CPA or tax preparer. Giving is much more than getting a tax break, it is a nice benefit if you are charitably inclined.
- Required Minimum Distributions.
RMDs are required when you turn 73 years old. Failure to take these RMDs could result in a 25% penalty. If you have other IRAs or 401(k)s outside of OmniStar’s management, be sure that you have considered those accounts and elected the proper distribution. It’s easy to overlook these mandatory distributions when accounts are scattered. If this sounds familiar, consider retirement account consolidation. This makes it much easier to track RMDs and avoid potential penalties.
- Begin Planning for 2025.
This one doesn’t have a 12/31 deadline, but considering how many people fail to plan, it is worth mentioning. It’s a great time to reflect on 2024 and think about what you’d like to accomplish in 2025. If you aren’t sure where to start, don’t worry. We have you covered with our Elements of Wealth Management.
We are grateful to be in the position of serving others. Helping you achieve your goals never gets old and we are honored to have so many clients who place their trust and confidence in our team.
