End of Year Financial Checklist

Important Things to Do for your Year-End Financial Checklist

Schedule a meeting with your financial planner or accountant. A good time to review your 2015 and beginning of 2016 for a financial checkup.

Couple meeting with financial planner.

Donate to Charity. December 31 was the deadline for charitable contributions you plan to deduct from your 2015 tax return. Some folks donate appreciated securities such as low-basis stocks or mutual funds to avoid capital gains tax. If the security is transferred, there's no tax to the client, and when the charitable organization sells it, there is no tax to them. Not sure yet where you want your charitable contributions to go?

If you set up a donor-advised fund, you could gift money to the DAF and get a tax deduction this year, but actually distribute funds to charity in the future according to one of the certified financial planner.

Max out Retirement Contributions. You have until you file your tax return next Spring to make a 2015 contribution to an individual retirement account (IRA) but 401(k) contributions are only deductible when made in the same calendar year. The 2015 contribution limit is $17,500 for 401(k) and $5,500 for IRAs (with an extra $1,000 catch-up contribution option for those ages 50 and older).

Use up FSA money. If you have money set aside in a FSA account, see if you can order new glasses or schedule that dental work you have been putting off. Some companies offer a grace period into the Spring or a $500 FSA carry-over from one year to the next, but usually not often. Once the New Year rings in if you have not used any remaining unused funds, you will lose that money.

Check your Beneficiaries. You can check the beneficiaries on your retirement accounts or insurance policies at any time-usually due to a death or divorce. Do this at least once a year no matter the circumstances.

Defer Income and Accelerate Expenses. Income that arrives in 2016 is taxable in 2016, so in some instances, it might make sense to delay that income to delay the tax bill - more for those owning a business as with payroll or employees increase in pay.

These are just a few recommendations as one is reviewing and preparing their 2015 taxes. Always check with your accountant even if you are doing your own taxes - as an accountant may find loopholes you did not know that may save you a few dollars. It pays to start early!

Provided by:Brenda Dever-Armstrong, CEO/Owner/Senior Living Advisor
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