2024 Year-End Tax and Financial Planning

Maximize Tax-Advantaged Accounts

• Max out 401(k) contributions - $23,000 limit for 2024 ($30,500 if age 50+)
• Contribute to IRAs - $7,000 limit for 2024 ($8,000 if age 50+)
• Maximize HSA contributions - $4,150 individual / $8,300 family limit for 2024

Tax-Loss Harvesting

Review your investment portfolio and consider selling underperforming assets to realize losses that can offset capital gains and reduce taxable income. This can help lower your overall tax liability.

Charitable Giving Strategies

• Donate appreciated securities to avoid capital gains taxes
• Set up a donor-advised fund for larger donations
• Consider bunching multiple years of donations into one year to exceed the standard deduction threshold

Estate and Gift Tax Planning

• Utilize the annual gift tax exclusion - $18,000 per recipient for 2024 ($36,000 for married couples)
• Consider larger gifts to take advantage of the lifetime gift tax exemption before potential changes

Roth Conversion

Evaluate converting traditional IRA assets to a Roth IRA, especially if you expect to be in a lower tax bracket this year. This allows future growth to be tax-free.

Defer or Accelerate Income/Deductions

• Defer income to next year if you expect to be in a lower tax bracket
• Accelerate deductions into the current year if itemizing
• For business owners, consider deferring billings or accelerating expenses

Review Estate Planning Documents

Update wills, trusts, and beneficiary designations to ensure they align with your current wishes and take advantage of estate tax exemptions.

Implementing these strategies requires careful analysis of your specific financial situation. Consult with your tax advisor and financial planner to determine which approaches are most beneficial for your circumstances.