Insight

What Issues Should I Consider Before the End of The Year?

While 2022 is quickly approaching there is still time to sit down and ensure that you are making the most of your 2021 planning opportunities.

Alex LaRosa, CFP®

Investment Advisor Representative
prepare your finances for the end of the year
Share on facebook
Share on twitter
Share on linkedin

What Issues Should I Consider Before the End of The Year?

While 2022 is quickly approaching there is still time to sit down and ensure that you are making the most of your 2021 planning opportunities. Below are a few of the important things to consider but we also included a full checklist of things to consider before year end.

If you have year-end planning questions, we are always available to meet and discuss.

 

Investment Accounts

  • Do you have unrealized investment losses in your taxable accounts?
    • If so, you may want to consider realizing some of the losses that can help offset any gains you may have. You can also write off $3,000 in losses against ordinary income as well as carry forward any unused losses.
    • Please let us know any special tax circumstances you may have with your realized or unrealized capital gains elsewhere or if you have loss carry forwards.

 

  • Are you age 72 or older, or are you taking an RMD from an inherited IRA?
    • You have until December 31st to take your required minimum distribution

Tax Planning

  • Reduce your Income and Tax Liability
    • This can be done by increasing contributions to qualified accounts i.e. 401(k)s, IRA’s, Etc.
      • Deadlines for 401(k) contributions are December 31st while IRA’s can be funded by Tax Day the following year

 

  • Are you charitably inclined and want to reduce taxes?
    • For taxpayers who claim the standard deduction, you are allowed a deduction of $300 ($600 if MFJ) for cash contributions to certain qualifying charities in 2021.
    • For taxpayers who claim the standard deduction, you are allowed a deduction of $300 ($600 if MFJ) for cash contributions to certain qualifying charities in 2021.
    • Explore tax-efficient funding strategies, such as gifting appreciated securities or making a QCD.
    • If you expect to take the standard deduction ($12,550 if single, $25,100 if MFJ), consider bunching your charitable contributions (or contributing to a donor-advised fund) every few years which may allow itemization in specific years.
      • Deadline for Charitable contributions is December 31st

Estate Planning

  • Have there been any changes to your family, heirs, or have you bought/sold any assets this year?
    • If so, consider reviewing your estate plan and updating any beneficiary information

 

  • Are there any gifts you still want to make this year?
    • If so, gifts up to the annual exclusion amount of $15,000 (per year, per donee) are gift tax-free.

 

Other Planning Ideas

  • Are you able to Save More?
    • If so, consider what types of accounts might make the most sense to save excess cash
  • Do you want to contribute to a 529 plan?
    • You can use your annual exclusion amount to contribute up to$15,000 per year to a beneficiary’s 529 account, gift tax-free.
    • Alternatively, you can make a lump sum contribution of up to$75,000 to a beneficiary’s 529 account, and elect to treat it as if it were made evenly over a 5-year period, gift tax-free

 

If you want to schedule an end of the year planning meeting give us a call at 610-825-3540. Here is the full checklist for end of year planning: 

SPEAK TO AN ADVISOR

blue bell private wealth management investment firm

Blue Bell Executive Campus
470 Norristown Road, Suite 305
Blue Bell, PA 19422
Map and Directions

OUR FIRM

© 2022 BLUE BELL PRIVATE WEALTH MANAGEMENT

sides creative web design

SPEAK TO AN ADVISOR

CLIENT ACCESS

WEB SITE ACCESS ACKNOWLEDGMENT

As a client of Blue Bell Private Wealth Management, LLC (“Company”), by selecting the “I Agree” button, I elect to participate in the password-protected access portion of Company Internet web site.  I understand that my participation will allow me to review certain investment-related information published by Company and unaffiliated third parties.  This password-protected access is made available to clients of Company free of charge.  This authorization shall continue until canceled in writing.

I understand that the password-protected section is a secure web site intended only to allow a client access to information relative to his/her/its specific account.  I also understand that I will be assigned an individual password.  I agree not to share my password with any other person. I hereby release and hold Company harmless from any adverse consequences relative to any failure by me to keep the identity of my password secure.

CLIENT ACCESS

CHOOSE A PROGRAM