Episode 48: Steps To Take Before The End of The Year

It’s hard to believe, but we’re getting close to the end of the year.  There are any number of things you could do in the next few weeks.  Some of them are important, and some of them aren’t so important.  How do you decide which items to prioritize?  In this week’s episode, Devin and John go over things they think need to be done.

Things You Should Do Before The End Of The Year

Charitable contributions:  Any contributions to charitable organizations needs to be made by 31 December 2017 in order to deduct those contributions on your 2017 taxes.

Harvesting Investment Gains and Losses:  If you have investments outside of qualified retirement accounts, you may be able to offset some gains with losses that you’ve incurred.

Required Minimum Distributions:  If you have money in retirement accounts that have required minimum distributions, and you’re over age 70 1/2, you need to be sure you’ve made those minimum distributions before the end of the year.  It’s a 50% excise penalty, so be sure that you understand the rules and get it right.

Sit Down And Review This Stuff With Your Tax Advisor:  Meet with your accountant now, and look to see how your overall yearly tax situation looks.  Then, you can decide whether or not to take certain steps and still have time to take the steps before 31 December.

Highlights include:

How to gift an appreciated investment to charity to avoid the capital gains taxes on the investment.

Why you need to investigate the costs to get out of a product if you’ll have a required minimum distribution.

What is a reverse rollover, and is this a good idea for you?  (No, it’s not a gymnastics move!)

Resources mentioned in this episode:

Big Picture Retirement Episode 5:  Hiring The Right Tax Advisor

Devin and John’s free e-book available at www.bigpictureretirement.net/steps

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Once a month, Devin and John answer questions submitted by listeners.  Do you have a question? Submit it to questions@bigpictureretirement.net.  Devin and John can’t answer every question on the air, but select questions that will provide information useful to the most listeners.