Year-End Checklist

Kendra McKinney |

Personal Changes

  • Did you sell a major asset like your home, business, or other real estate?

  • Did you transfer any major financial assets?

  • Did you refinance your house? 

  • Did you receive a gift or inheritance?

  • Did you lose a loved one?

  • Did you change jobs?

Milestones

  • 50: Now you can make catch-up contributions to IRAs and some qualified retirement plans.

  • 55: If retired, you can take distributions from 401(k) plans without penalty.

  • 59 ½: You can take distributions from IRAs without penalty.

  • 60-63: Now you can make super catch-up contributions to employer-sponsored plans (if plan allows)

  • 62-70: You can apply for Social Security benefits.

  • 65: You can apply for Medicare.

  • 73: You must begin taking Required Minimum Distributions (RMDs) from IRAs.

Investments

  • Call me to schedule a financial check-up (734) 667-5581.

  • Consider if the 3.8% Medicare surtax on unearned income applies to you.

  • Confirm investment goals, strategies and review asset allocation. 

  • Revisit income and savings needs.

  • Review life insurance policies and costs.

Retirement

  • Take Required Minimum Distribution (RMD) from IRA.

  • Review overall retirement income strategy.

  • Analyze Roth IRA conversion scenarios:  full vs. partial vs. none.

  • Max out 401(k) or IRA contributions including catch-up contributions.

  • Open a retirement plan if newly self-employed.

Family

  • Is there a severe illness in the family?

  • Do you have a family member in need of assisted living?

  • Estate planning review - get estate documents in place.  Review advanced year-end gifting strategies.

  • Make any cash gifts to family members and/or plan charitable contributions.

Health

  • Review Health Savings Account contributions.

  • Spend down your Flexible Spending Accounts for healthcare and/or childcare.

  • Calculate medical insurance deductible, and, if not met, consider holding off on certain medical treatments until Jan 1st. If met, consider the opposite.

  • Evaluate your family’s benefit needs during your employer’s open enrollment period.

  • Review Medicare enrollment options.

Taxes

  • Review sales of any appreciated property including, but not limited to, real estate and artwork.

  • Collect cost-basis information on sold securities.

  • Review realized and unrealized gains and losses.

  • Check loss carry-forwards from last year.

  • Identify transactions that could improve tax situation.

  • Have a tax advisor prepare a year-end tax projection, including AMT.

  • Review potential deductions and credits before the end of the year.