Year End Financial Checklist

Year End Financial Checklist

It's the time of year to be thinking about year-end deadlines.  Here’s a quick checklist – not all-inclusive, but hopefully helpful:

  • Be sure you are on track to fully fund your 401(k) salary deferrals.  2017’s limit is $18,000 in salary deferrals, or $24,000 if you are over 50. Salary deferrals need to be made by year end; more time is allowed for safe-harbor and employer-funded discretionary contributions.  
  • Call us or your CPA to discuss your tax withholding and quarterly estimates.  Have you set aside enough to avoid an April surprise?
  • Are you saving for college for kids or grandkids?  If you live in a state that provides a state-tax deduction for 529 contributions, get those made before year end. 
  • Have you paid your spouse through the business to maximize retirement savings? 
  • Will you be making charitable contributions during the holiday season?  Consider tax-efficient strategies such as gifting appreciated securities or giving directly from IRAs (the latter only applies if you’re 70+).  Maybe this is the year to open a Donor Advised Fund?  
  • Do you need more deductions this year?  Consider accelerating some of 2018’s tax-deductible expenses into this year (some rules apply)
  • If your dental practice is a C-Corp, look at what might be done to minimize this year's taxable income in the corporation. 
  • Make sure you’re paying your medical insurance premiums through your dental practice. 
  • Are you over age 70.5?  Be sure to take your Required Minimum Distribution (RMD)  before the end of the year.  The penalties for missing an RMD are harsh.  Here’s a link to a list of articles we’ve written about RMDs. 
  • Remind patients with insurance that the end of their benefit year is nearing – make sure they have taken advantage of their coverage before it resets in January.
  • And finally, it’s never too early to start thinking about your New Year’s financial resolutions!

Not all the ideas above may apply to you, give us a call to discuss in more detail.  

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