Get a jumpstart on year-end planning with this useful checklist

It’s important to assess personal finances before the end of the year to determine if action is needed. This may include reviewing portfolios, funding retirement accounts and making gifts to family members or charities.

Review this checklist for opportunities to minimize taxes and other potential benefits.

It can help uncover for opportunities to improve your financial plan for the coming year.

Here are a few highlights from each area:

Keep investments on track

• Adjust or rebalance portfolios to make sure asset allocation reflects current risk profile
• Be aware of mutual fund distribution dates before making purchases

Identify opportunities to minimize taxes

• Estimate your projected income for the year to determine your marginal tax bracket
• If a low tax bracket applies, consider accelerating income before the end of the year; if a high tax bracket applies, consider deferring income into next year if possible
• Be aware of important tax-related income thresholds (e.g. income limits applying to the 3.8% net investment income tax, higher Medicare premiums and taxation of Social Security benefits

Focus on retirement planning priorities

• Maximize retirement savings including catch-up contributions if age 50 or older
• Remember to take required minimum distributions (RMDs) if age 73 or older
• If concerned about higher taxes in the future, consider a Roth IRA conversion

Understand options for charitable giving

• Make charitable gifts before year-end to lower taxable income (if itemizing deductions)
• If age 70½ donate to charities from your IRA using a qualified charitable distribution (QCD)
• Lump several years of charitable gifts into one year to itemize deductions on the tax return

Create a legacy for family members

• Utilize the annual gift tax exclusion before year end ($18,000 per individual or $36,000 for married couples electing to split gifts)
• Make sure important documents (e.g., wills, trusts, powers of attorney, health care directives) are in place and up to date
• Make gifts into 529 college savings plans

Consult with an advisor

It is important to discuss tax, charitable giving, retirement and estate planning strategies with a tax and financial advisor to determine if they are appropriate for your overall financial plan.