Top 10 Items To Tackle Before 2023

​As we enter the last month of summer, let’s take time to address our top 10 items to tackle before 2023.

Open Enrollment

  • Are you taking FULL advantage of your employer’s benefits?
  • Do you need to reassess your health care plan?
  • Is your plan HSA-eligible, and if so, are you investing instead of spending?
  • What about your group term and disability coverage?

Max Out Your Retirement Plan

  • If you have a 401(k), the max is $20.5K; $27K if you are over 50.
  • SEP IRA? The lesser of 25% of your compensation or $61K is the max.
    • If you’re self-employed, there is some additional math.
  • SIMPLE IRA? $14K is the max; $17K if over 50.

Roth Conversion

  • Work with a financial planner or tax professional to determine your tax bill when you file in 2023.
  • Be mindful of not pushing yourself into the next tax bracket with this strategy, or the next Medicare bracket if 65 or older.

Tax Loss Harvesting

  • Again, another great time to harvest losses and pick up new investments at a discount.
  • Be mindful of wash sale rules.

Accumulate Receipts For Home Improvements

  • Did you move or remodel this year?
  • Keep track of your “basis” (i.e., what you put into your home that will stay with the home) to minimize your capital gains tax should you exceed the exclusion upon sale.

Review Your Property & Casualty Insurance

  • If your home value increased this year, ensure you have at least 80% coverage.
  • Have you considered an umbrella policy?

529 Contributions

  • If your cash flow permits, we suggest saving no more than half to two-thirds for college via a 529 plan.
  • If you reside in a state that permits a state tax deduction, ensure you’re taking full advantage.

Required Minimum Distributions (RMDs)

  • If you’re over 72 or inherited an IRA, ensure you take this before year-end.

Charitable Donations

  • If you itemize on your tax return and are charitably inclined, line up your donations before the year closes.
  • Have you considered a Donor Advised Fund?
  • If you’re over 70 ½, consider a QCD.

Reassess Asset Allocation

  • We are likely in a prolonged inflationary environment – are you positioned appropriately?

If you have any questions, don’t hesitate to use us as a resource – contact us today.

All views, expressions, and opinions included in this communication are subject to change. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services