Eric Wyss Discusses Year-End Tax Planning

As the end of the year is coming up it is important to make sure you have all your finances in order. Director of Financial Planning and Risk Management, Eric Wyss, discusses year-end tax planning and what to consider as the year comes to an end.

1. Reduced IRA values may make a Roth conversion a good tax decision prior to year-end.
2. Consider increasing contributions to employer retirement accounts over the next few weeks.
3. If you are in an extremely low tax bracket, over 59.5 years old and not yet required to take RMDs, consider taking a retirement distribution from your IRA or making a Roth conversion.
4. Analyze how 2022 taxation stacks up against 2023 projections:                                                                                                                  a. Defer income until next year if 2022 is larger than normal, or                                                                            b. Recognize income this year if it’s lower than normal                                                                                            c. Same concept applies for capital gain recognition 
5. Review your wills, power of attorney and health care directives.

All year long, if you have excess cash or securities available in a non-retirement account(s), use that liquidity to pay off revolving credit card debt.  Unless you have a remarkable opportunity, you won’t be able to match the interest rates you’ve been paying.

CRN-5320977-120522