3 Important Tasks to Tackle Before December 31

Asset Protection Group | Dec 4, 2018

We realize that everyone is feeling quite busy these days, but we do dedicate ourselves to helping our clients identify important financial planning opportunities. That’s why we wanted to remind you of three simple, but very important tasks that you should address before the end of 2018.

Make charitable contributions. If you plan to claim charitable contributions as a tax deduction in the spring, keep in mind that these donations must be made by December 31. Otherwise, you can’t use them on your 2018 taxes. Check to be sure that your chosen charity is qualified by the IRS before you write any checks.

Keep receipts, or a copy of your debit or credit card statements, as proof of your donations. Without proof, you could lose your tax deduction.

Max out retirement plan contributions. If suitable for your situation, you may want to consider maxing out annual contributions; it’s also a good way to save on your income taxes now. Check on your 401(k) contributions now, to see if you’re on track to meet the limit of $18,500 for 2018.

If you use an IRA to save for retirement, the contribution limit was $5,500.

For those of you age 50 or over, you can also reap extra benefits by making “catch-up” contributions of an additional $6,000 to your 401(k), or $1,000 to your IRA.

If you can’t reach the maximum contribution, try to reach your employer’s matching funds amount. This is often considered “free” money for retirement, so why not take advantage of it?

Schedule an appointment. While you don’t necessarily need to attend the actual appointment by the end of the year, go ahead and schedule a “check-up” with us soon. We can help you review your goals for the future, update your retirement plan contribution schedule for 2019, and take other important financial planning steps toward a more stable future.