End of Year Planning Reminder 2024

The end of the year is fast approaching and it's a great time to remind you of action items that can help improve your personal finances. Some planning strategies to consider:

• If you're not retired, remember to contribute the maximum amount to your individual or employer-sponsored retirement plan based on specific IRS limits for 2024.
• If you or your spouse is 73 or older, Required Minimum Distributions (RMD) must be taken before Dec 31. Otherwise, you could incur an additional penalty tax
• Make charitable contributions (outright or through a donor-advised fund) that you want to be able to claim as a deduction on this year’s tax return.
• Consider Qualified Charitable Distributions (QCD) from your IRA if you're above 70 ? and want to make charitable contributions, but not from your normal cash flow.
• Gift children or loved ones up to the maximum annual exclusion amount ($18,000 for individuals; $36,000 for married couples filing jointly) for those looking to remove assets from their estate.
• Consider converting all or a portion of your Traditional IRA to a Roth IRA if your income is lower in 2024 and expecting income to increase in following years.
• Review how much money you’ve spent for those with employer-sponsored Flexible Spending Accounts (FSA) so you don't lose any unused funds for next year. ?
• Track your 2024 spending so we can compare against your budget and make any necessary adjustments for next year.
• Do you expect to earn more next year? Let’s discuss putting some or all of your expected increase into savings or investments.
• Think about your family's financial goals and concerns so when we next meet, we can update with any changes:

Can you save more for retirement? Or for college?

Do you have an excessive amount of cash sitting idle in the bank?

Do any of your debts have variable interest rates, such as credit cards or HELOCs, that can be paid off with excess reserves?

Changes, financially or emotionally, for life, disability and long-term care insurance?

Do you expect any unusually large expenses next year?

Should we re-assess your portfolio's risk level based on your spending timeline.

Important Date: Dec. 31 isn’t just New Year’s Eve; it’s also your deadline for a number of financial to-do items mentioned above. Dec. 31 is a Tuesday in 2024, so aim to knock off any of these financial tasks by Friday Dec. 27 at the latest.

Taking the time to address these items now can help you finish the year strong as well as make 2025 a successful and brighter year!

If you have any questions about year-end planning strategies, please call your advisor directly or email us at [email protected] Please visit our website at bfllc.com for more information on our planning services. ?

Sincerely,

Benchmark Financial