Many financial planning strategies require action before the end of the year or investors may lose out on tax advantages. Gifting and retirement account distributions are among the leading topics for discussion at year-end planning meetings.

Chris Hennessey talks about some of the strategies that offer tax advantages, but only for a limited time.

  • Gift tax exemption. Individuals may gift up to $14,000 without triggering a gift tax, but it must be completed within the tax year.
  • Required minimum distributions. The IRS mandates that retirees take annual distributions from IRAs and other retirement accounts. Many investors typically take these in the fourth quarter to avoid a penalty.
  • Charitable gifts. A charitable donation must be completed before the end of the tax year in order to access any tax deductions.

The deadline for many of these strategies provides an opportunity to reach out to investors for year-end planning and an investment review.


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