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Year-End Financial Planning

December 04, 2019

As we set our eyes on the new year, it’s an ideal time to sit down and review your financial strategy. Take a few moments to review some of these deadlines and take advantage of the opportunity to grow your wealth and better position yourself:

  • Revisit your 401(k) contributions. You have until December 31 to contribute up to $19,000 to your 401(k) for 2019 (or $25,000 if you’re age 50 or older).1 If you aren’t on track to max out your contributions, let your employer know immediately so that you can boost your contributions with the last remaining pay periods.
  • Review required minimum distributions (RMD). If you’re age 70½ or over, December 31 is the last day to take your RMD from your traditional 401(k) or IRA to avoid penalties. Click here to access an IRS worksheet to help calculate your RMD, the amount based on your age and account balance.
  • Review estate plans. To ensure that your estate plan still aligns with your goals, it’s important to periodically revisit your estate plan to account for any life changes that have occurred this year.
  • Prepare charitable donations. Donating to charity is a good strategy for reducing taxable income while helping a worthy cause. Be sure to obtain written acknowledgment from the organization if you’re claiming a contribution of $250 or more. For items valued at more than $5,000, plan on providing a written appraisal.2
  • Spend your flexible spending account (FSA) dollars. Depending on the plan, your FSA must either be fully depleted by the end of the year or up to $500 can be rolled over to the next year. Otherwise, your contributions will be forfeited.3
  • Start planning for next year. While you’re tying lose ends, it’s also a perfect time to discuss your goals for 2020 and developing a holistic plan to reach them.

The end of the year can be a hectic time for many people; however, there are many financial moves to consider that may affect the upcoming year and the years to come. As you make preparations, feel free to reach out to us to discuss deadlines and opportunities that are most relevant to you and your situation.


This document is for educational purposes only and should not be construed as legal or tax advice. One should consult a legal or tax professional regarding their own personal situation. Any comments regarding safe and secure investments and guaranteed income streams refer only to fixed insurance products offered by an insurance company. They do not refer in any way to securities or investment advisory products Insurance policy applications are vetted through an underwriting process set forth by the issuing insurance company. Some applications may not be accepted based upon adverse underwriting results.  Death benefit payouts are based upon the claims paying ability of the issuing insurance company. The firm providing this document is not affiliated with the Social Security Administration or any other government entity.

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