As we approach the beginning of a new year, the anticipation of what lies ahead is exciting. It's also an opportunity to evaluate your financial plan, ensuring alignment with your objectives and addressing critical year-end deadlines. Below, you'll find a list of deadlines pertaining to various account-related transactions. Please note that some of these deadlines may not be applicable to your specific situation:
- 12/1 - Roth Conversion: If you've been in discussions with your financial advisor regarding a potential Roth conversion in 2023, we must initiate the process no later than December 1st. Don't wait until the last day!
- 12/1 - Gifting: If you intend to make a gift or charitable contribution, whether through a Qualified Charitable Distribution (QCD) from your IRA or from another account, please provide us with your instructions by December 1st so that we can assist you with the necessary paperwork.
- 12/8 - Voluntary Federal & State Income Tax Withholding: If you have had an address change in 2023, and have taken a distribution from your retirement account, we must be notified by December 8th to ensure any applicable withholding amounts can be corrected within the same tax year.
- 12/15 - Required Minimum Distribution (RMD): If you are 73 years or older, you may have RMD obligations for your Traditional IRA, Traditional 401(k), or other retirement accounts by December 31st. To ensure timely processing and paperwork completion, we kindly request that all RMD requests be communicated to our office by December 15th. Additionally, be sure to verify whether RMDs are required from any other retirement accounts you may hold.
- 12/28 - Tax Loss Harvesting: Tax loss harvesting is typically used to limit the recognition of short-term gains. If you have spoken with your tax advisor or preparer, and they have encouraged you to consider tax loss harvesting, please contact our office as soon as possible so that we can assist you in identifying the appropriate securities to sell.
Too often, those who wait until the last minute do not accomplish what they set out to accomplish. Don't let that happen to you. Contact our office today!
To view LPL's year-end guide, which includes other possible year-end deadlines, click this link: Year-End Guide.
Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.