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Year-end Changes To Consider

| December 30, 2020

Annual Savings goal

If you already had one and met it, yay! If not and still can, also yay! And / or set a new one for 2021.

Backdoor Roth IRA

See tutorial linked below and / or consult your tax expert.

Charitable Giving

Again consult your tax expert to consider if 2020 or 2021 is better for you.

Contributions Change for 2021

Revise or establish and automate as much as possible any tax-advantaged contributions available to you. See below-linked tax facts for 2021.

Corona Virus Related Distribution

Once again, consult your tax expert if beneficial for you.

Donor Advised Fund Contribution

Perhaps a useful choice for highly appreciated assets also mentioned below.

Flexible Spending Money

Take advantage of any availability you have remaining.

Health savings account funding as available

Ditto

Highly appreciated stocks

Tax expert. Plus forecast your 2021 tax position for possible changes, Including Donor Advised Fund

Life Insurance gift of money (premium) for beneficiaries

Life insurance can potentially work out very well for beneficiaries if you are in the financial position to do it.

Net Worth Tracking

End of year an excellent time to do it.

Rebalance portfolio

2020 might have distorted or changed your desired proportions. Adjust as your needs dictate.

RMD review

Tax expert again. Potential differences but also just because you're not required does not automatically mean it is good to delay. Discuss w Financial Team.

Roth open or additional contribution

While crystal balls can be cloudy, some tax rates are historically at the low end of their range, making Roth potentially attractive. Financial Team again.

Tax loss harvesting

Based on what your First Draft 2020 tax situation looks like.

Tax sheltered accounts add if possible

Again if you have the financial capacity, the tax "clock" restarts each year so take advantage of what you can do in 2020.

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