Year-end is quickly approaching. While true tax planning should take place much earlier in the year, here’s a few last minute tax opportunities to consider. If you still have money in your Nucor HCSA (Health Care Spending Account), don’t forget to “use it or lose it” as you can only carry over $640 in to next year. Take a look at your 401k contributions so far in 2024. If you will fall short of maxing out ($23,000) consider increasing your contributions as much as possible between now and Dec 31. If you are over 50 and haven’t done any “catch up” contributions, don’t forget, you can elect to put away a specific dollar amount per paycheck to try to hit the extra $7,500 limit in your 401k. For tax deduction purposes, you could consider making charitable contributions before year-end using highly appreciated shares of stock from your non-retirement taxable investment accounts which will help you offset future capital gains taxes and/or give you a potential tax deduction this calendar year. Finally, look at those same non-retirement account holdings and see if you can do tax-loss harvesting to give you a tax deduction this year and/or offset current or future capital gains. As always, we recommend you consult a tax advisor or speak with your CalmWater Advisors to discuss what strategies may be best for you.
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Securities and advisory services offered through Commonwealth Financial Network®, Member FINRA/SIPC, a Registered Investment Adviser. Fixed insurance products and services are separate from and not offered through Commonwealth.