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Finish Strong
Somehow, we’re already approaching the close of another year. What do you still need to do to finish 2025 well?
- Where do you stand with capital gains and losses? Are there moves that could reduce your tax bill?
- Have you maxed out your retirement plan contributions?
- Does a Roth conversion make sense this year?
- Are there opportunities for charitable giving to support the causes or communities you care about?
- Is it time to open a Donor Advised Fund?
- Have you taken your required minimum distributions (RMDs) from your IRA?
- Do you need to use remaining funds in your Flexible Spending Account (FSA)?
- Is gifting part of your estate planning strategy? You can give $19,000 ($38,000 for a married couple) to recipients without reporting it to the IRS.
As we wrap up 2025 and tackle year-end moves, start thinking about what you'd like to look different a year from now. What's one financial habit you want to change? One goal you want to hit? Next month, we'll challenge you to set some goals and we can help you stay on track.
Corrections and Clarifications:
Yikes! A friend, client and astute reader caught a mistake in our Halloween Newsletter. We touched on the benefits of using your IRA to make Qualified Charitable Distributions (QCDs). This has become a very popular way to financially multitask. You can satisfy your required minimum distribution (RMD); support worthwhile causes and avoid income taxes.
We could have done a better job explaining that you can make QCDs starting at age 70 1/2 while RMDs don't begin until age 73. We also quoted the 2024 QCD max. In 2025 you can give away up to $108,000 from your IRA in the form of a qualified charitable distribution. Thank you for the feedback!
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