The fourth quarter always feels like a sprint - patients rushing to use their benefits, year-end staff events, and wrapping up a busy practice schedule. But it’s also the time to check off a few key financial items before December 31st.
At Mission Financial Planning, we use Q4 meetings to make sure dentists and practice owners don’t miss opportunities or deadlines. Here are some of the biggest things we’ll be reviewing with clients this quarter:
For Everyone
Investment check-up - If your investment accounts saw gains (or losses) this year, we’ll review whether it makes sense to offset gains with losses for tax purposes. This is called “tax-loss harvesting,” but really it’s just being smart about timing.
Family gifting- You can give up to a certain dollar amount per person, per year, without needing to report it on a gift tax return. If you’ve been thinking about helping kids or grandkids, now’s the time to review.
Charitable giving - December is prime giving season. We’ll talk about whether there are strategies (like donating appreciated stock) that might make your generosity stretch further.
For Working Dentists and Practice Owners
Retirement plan contributions - Review your most recent pay stub to make sure you’re on track to max out 401(k) contributions. If you sponsor a plan for your team, confirm year-end deadlines and employer contributions as well.
Health Savings Accounts (HSAs) - Contributions made through payroll must be in by December 31st.
College savings (529 plans) - Contributions need to happen before year-end to qualify for this tax year.
Employee Benefits - Fall is typically the open enrollment season. If your practice offers health or retirement benefits, make sure elections are updated both for you and your staff. If you have a spouse with employer benefits, be sure you're taking full advantage of their family benefits.
Tax planning - Many practices consider equipment purchases, expenses, or bonuses before year-end, we'll help evaluate, and talk about whether a cash purchase or borrowing makes more sense.
For Those in Retirement
Roth conversions - Moving money from a traditional IRA to a Roth before year-end may lower lifetime taxes.
Required Minimum Distributions (RMDs) - If you’re at RMD age, these must be taken by December 31st to avoid hefty penalties. Consider using RMDs to pay taxes and make charitable contributions.
Giving directly from IRAs - After age 70.5 you can donate to charity straight from your IRA, which can reduce taxable income.
Why It Matters
The end of the year is already full with patients, family, and holidays - but these financial deadlines don’t move. Spending a little time on them early can mean saving money, lowering stress, and starting the new year with confidence. If you’d like to see what that could look like for your own financial plan - whether you’re a new dentist, a growing practice owner, or transitioning to retirement - we would love for you to set up a time to talk with us.