this post was submitted on 30 Nov 2023
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Personal Finance

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[US] End of year PF tasks (www.kiplinger.com)
submitted 1 year ago by sugar_in_your_tea@sh.itjust.works to c/personalfinance@lemmy.ml
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I like to review my financial situation near the end of the year to prep for tax season, give to charity, etc. For any who cannot access the article or are too lazy, here are the things they recommend:

  1. Tax loss harvesting
  2. Contribute to retirement accounts
  3. Convert IRA to Roth
  4. Reassess risk tolerance
  5. Review RMDs - only for 73+
  6. Charitable contributions
  7. Fund accounts for dependents

I check most of these, but more importantly I look at the new limits for 401k and IRA, as well at HSA limits for the upcoming year.

Is there something you like to do financially at the end of the year?

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[–] fnie@lemm.ee 2 points 1 year ago* (last edited 11 months ago)

Not just for the end of the year, but I check that I've paid enough in taxes. Roth conversions (for US folks), investment income in taxable accounts, retirement distributions, etc can all generate taxable income that pushes tax liability too far above the amount covered by payroll withholding and result in penalties.

Edit: Specified that Roth conversions are for US folks