Year End Financial ChecklistSubmitted by Mission Financial Planning on October 16th, 2017
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.