We are officially approaching the last 2 months of the year which means that you should start making end of year tax planning/financial planning moves. Now you may be wondering, “what are those strategies I should be considering?”
In this blog post I am going to walk you through 20 moves to consider making that can have a huge impact on your financial future.
Let’s get right into it.
- Max out your 401k, 403b, 457, etc
- Max out your Roth IRA (you have until the tax filing deadline on this one)
- Max out your HSA
- Max out your 529 plan to the state tax benefit
- Use all of your dependent care FSA funds
- Use FSA funds as most are use it or lose it
- Do tax loss harvesting on your taxable investment accounts
- Do some tax gain harvesting within your taxable investment accounts
- Consider electing into your ESPP for next year
- Sell ESPP funds that became yours in December (if you want to lock in the discount)
- Do Roth conversions to maximize lower tax brackets
- Exercise ISO’s up to the AMT threshold (or maybe even past if it’s part of your plan)
- Exercise NSO’s if it makes sense
- Look through your paycheck and make sure you have withheld enough for taxes
- Do megabackdoor Roth if your company allows it and you have extra money
- Donate cash to charity (maybe even consider bunching/donor advised fund to get even more in deductions)
- Donate highly appreciated securities (before selling to avoid the capital gains tax)
- Do a cost segregation study on your property and bonus depreciate it while bonus is still at 80%
- Invest in a qualified opportunity zone if you have a large capital gain to defer
- Prepay property taxes to hit $10,000 max deduction (if married)
All of these can be super impactful. Take a look at which ones apply to you and go make these moves. Your future self will thank you.
Disclaimer: None of this should be seen as advice. This is all for informational purposes. Consult your legal, tax , and financial team before making any changes to your financial plan.
