As the end of the year approaches, it’s time to think about any last minute tax strategies. At the same time, I have a checklist of things to prepare for the upcoming year. It’s more efficient to do them at the same time as many of the strategies impact calculations for next year.
- Tax loss harvesting: I go through our taxable accounts and sell stock that I am carrying at a loss. See more on how to harvest tax losses .
- Maximizing any tax deferral options still available in 401k, 403b and 457 plans.
- Having any extra dental work done, prescriptions refilled, etc. to use remaining flexible spending account dollars.
- Conversion of IRAs to Roth IRAs to maximize the rest of our tax bracket.
- Moolanomy highlights some additional strategies in 22 Money Maximizing Moves You Can Do Today .
I also complete the following paperwork for the upcoming year:
- Enroll in dependent care and flex spending account.
- Determine correct amount of withholding based on projected income.
- Evaluate net worth and determine if additional umbrella insurance is needed.
- Rebalance our portfolios to match our selected asset allocation.
- Check for appropriate deductibles and limits of car, home and life insurance.
- Evaluate income phase outs for planned deductions; refigure taxes if needed.
- Update our list of assets in the house and financial papers and place in safe deposit box.
- Measure progress on our dollar plan .
- Look up value of cars and decide whether or not to carry comprehensive and collision coverage.
- Start a new tax folder to gather paperwork in throughout the year.
- Fireplace maintenance. (Not really a financial item, but it’s on my yearly list anyways).