The Best Holiday Gift Is Saving

As the year draws to a close, there’s still time to accomplish your financial goals before 2024. Two key points of emphasis for your December 31st deadline are 401(k) contributions and 529 college savings plans. With holidays approaching, don’t forget that one of the best gifts you can give yourself is taking full advantage of them both before the clock runs out.?

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Max Out Your 401(k) Contributions?

Your 401(k) is a vital tool for securing your financial future, and it's important to make the most of it before the year ends. For 2023, the maximum contribution limits are $22,500 for those under 50 and $30,000 for those over 50. Contributing to your 401(k) doesn't just reduce your taxable income; it can also net you employer matches and tax-deferred growth. It's like giving a little gift to your future self. So, if you haven't hit these limits yet, consider upping your contributions in the remaining months of the year to supercharge your savings and tax benefits.?

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Last Call for 529 College Savings?

If you're saving for your child's education, the 529 college savings plan is a great gift you can give them. Contributions to these plans grow tax-free when used for qualified education expenses, making them an excellent choice for many families. But remember, you must make contributions by December 31st to apply them to this tax year.?

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It's worth noting that 529 plans differ from state to state, and some states offer tax deductions or credits for contributions. To find out if your state offers a 529 contribution deduction for tax purposes, reach out to your accountant or financial advisor. Leveraging any available tax benefits can help you maximize your college savings and alleviate the financial pressure of higher education.?

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As we approach the year's end, it's important to make the most of these financial opportunities for a more secure future. Make sure you've maximized your 401(k) contributions to enjoy the tax benefits and explore the unbelievable options available to you with 529 college savings plans. Don't wait until next year; start your year-end financial planning now and set the stage for a brighter financial future.?

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Gerber Kawasaki Wealth & Investment Management is an investment advisor located in California. Gerber Kawasaki Wealth & Investment Management is registered with the Securities and Exchange Commission (SEC). Registration of an investment advisor does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Gerber Kawasaki only transacts business in states in which it is properly registered or is excluded or exempted from registration. A copy of Gerber Kawasaki Wealth & Investment Management 's current written disclosure brochure filed with the SEC which discusses, among other things, Gerber Kawasaki Wealth & Investment Management's business practices, services and fees, is available through the SEC's website at: https://www.adviserinfo.sec.gov .?

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Shawn DaCruz is a Financial Advisor of Santa Monica, Calif-based Gerber Kawasaki Inc., an SEC-registered investment firm with approximately ~$2.2B billion in assets under management as of 02/16/23. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which course of action may be appropriate for you, consult your financial advisor. No strategy assures success or protects against loss. Readers shouldn't buy any investment without doing their research to determine if the investments are suitable for their situation. “All investments involve risk and one should consult a financial advisor before making any investments. Past performance is not indicative of future results?