By Investment Associate Bobby Adusumilli, CFA.
As we approach the end of the year, we want to highlight some important financial items to review before the new year:
Contributing to workplace retirement plans, health savings accounts, and 529 plans for education: Each of these accounts help you to save and potentially invest in tax-advantaged ways, though all contributions need to be completed prior to December 31st.
Required minimum distributions (RMDs) from pre-tax retirement plans: For those age 72+ who need to take RMDs from retirement accounts such as a Traditional IRA, ensuring that your RMDs are satisfied prior to December 31st can help you avoid a potential financial penalty from the IRS.
Charitable donations as well as gifting to loved ones: Particularly in a positive return investment year, it may be advantageous to donate appreciated securities from a taxable account. Additionally, for those age 70.5+, you are able to make qualified charitable distributions (QCDs) directly from your Traditional IRA worth up to $105,000 prior to December 31st. For those gifting to individuals, you can gift $18,000 per beneficiary without being subject to gift tax.
Private fund tax forms: For those investing directly in private funds, you may have received K-1 tax forms relating to your investments, which may need to be included as part of your taxes due by October 15th.
As always, we would be happy to assist you in reviewing your finances to help ensure you are achieving your financial goals.
Important Disclosure Information:
There is no guarantee investment strategies will be successful. Past performance is no guarantee of future results. Diversification neither assures a profit nor guarantees against a loss in a declining market.
Statements contained in this report that are not statements of historical fact are intended to be and are forward looking statements. Forward looking statements include expressed expectations of future events and the assumptions on which the expressed expectations are based. All forward looking statements are inherently uncertain as they are based on various expectations and assumptions concerning future events and they are subject to numerous known and unknown risks and uncertainties which could cause actual events or results to differ materially from those projected.
Advisory services are provided by SJS Investment Services, a registered investment advisor (RIA) with the SEC. Registration does not imply a certain level of skill or training. SJS Investment Services does not provide legal or tax advice. Please consult your legal or tax professionals for specific advice.