As the year winds down, it's time to review your finances and check off the essentials from your to-do list. Use this checklist to ensure you're financially prepared for the new year.

Reduce Taxes

▉ Tax Loss Harvesting If you have unrealized investment losses in your taxable accounts, consider selling those investments to offset any capital gain. If your losses exceed gains, you can deduct up to $3,000 from your ordinary income to reduce your tax bill.

▉ Charitable Contributions Make donations to qualified charitable organizations before December 31st to reduce your taxable income. For large donations, bunching contributions or contributing to a donor-advised fund can help maximize your tax savings.

▉ Health Savings Account If you have an HSA, you can contribute (tax-free) up to $4,150 for individuals ($8,300 for a family), with an extra $1,000 catch-up contribution if you're 55 or older.

▉ 529 Plan For tax benefits before the end of the year, in some states*, you can contribute up to $18,000 per year per beneficiary or make a lump sum contribution of $90,000, spread over five years, gift tax-free.

Avoid Penalties

▉ Required Minimum Distributions If you’re over 73 or inherited an IRA, don’t forget to take your RMDs to avoid hefty penalties. For multiple IRAs, you can aggregate RMDs, but inherited IRAs must be handled separately. RMDs from employer retirement plans must be taken separately, except for 403(b) plans, which can be aggregated.

Don’t Leave Money on the Table

▉ 401(k) Contributions Contribute enough to your 401(k) before December 31st to meet the annual limit – $23,000 for 2024, with an additional $7,500 catch-up contribution if you're 50 or older.

▉ SEP / SIMPLE IRA If you’re self-employed or a small business owner, you can contribute to a SEP IRA or SIMPLE IRA before year-end to take advantage of tax benefits.

▉ Flexible Spending Account If you have an FSA, check whether you have unused funds and spend any balances before they expire. Some plans allow a grace period or carryover, but many don’t.

This checklist is designed to help you stay organized and on track, so you can wrap up your year feeling confident and prepared. Take a moment to review these items, and if you need guidance, don't hesitate to reach out to [email protected].

* Nine states (Arizona, Arkansas, Kansas, Maine, Minnesota, Missouri, Montana, Ohio, and Pennsylvania) offer tax parity, which means that investors can deduct their taxable income on contributions made to any plan in the US (most states allow you to take a deduction only if you invest in the state-sponsored plan).