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Things to Think About - November 2023 Newsletter

As we approach the end of another year, it's crucial to take stock of your financial goals and retirement plans. The final months of the year bring forth essential deadlines and strategic opportunities that can significantly impact your financial future.  

1. Review Your Goals and Update Your Financial Plan

  • Did you achieve your financial milestones this year?
  • Are you on track with your retirement savings?
  • Have there been any major life changes that require adjustments to your financial plan?
  • Can you contribute more to your retirement accounts or taxable savings?
  • Take advantage of SilverLake's financial planning software tracking your holistic financial picture.

2. Key Year-End Deadlines:

*Note - the last business day of 2023 is December 29th.

  • Medicare Open Enrollment (12/7): Last chance to sign up for the national health insurance program.
  • Roth Conversions (12/29) :  The end of the year is the deadline for completing a Roth conversion for the 2023 tax year. 
  • Use money left in your Flexible-Spending Account (12/29):  Money left in an FSA may be lost if not used by year end. 
  • HSA Contributions for 2023 (12/29): HSA contributions for 2023 can be made until the tax-filing deadline in April, However, for HSAs, waiting until April may mean making a contribution outside of payroll deductions, potentially incurring FICA taxes that could have otherwise been avoided if the contribution had been made by December 31 of the previous year.
  • Charitable Contributions (12/29): If you itemize your taxes, you can deduct charitable donations to qualified organizations from your taxes. In general, you can deduct up to 60% of your adjusted gross income (AGI) for cash donations, per IRS rules. For donations of appreciated securities, you may be able to deduct 30% of your AGI.
  • Harvest Investment Losses (12/29): Tax-loss harvesting allows you to sell investments that are down, replace them with reasonably similar investments, and then offset other realized capital gains with those losses.
  • VT529 Plan Contributions (12/29): VT529 account contributions made by December 31 qualify for a state income tax credit of 10% of the first $2,500 contributed per beneficiary (in case of married filing jointly, 10% of the first $5,000 per beneficiary).
  • 401K & 403B Contributions (12/29): Work with your HR department prior to the December 29th deadline so that the desired contribution for the year can be made. For the 2023 tax year, the maximum contribution allowed is $22,500, or $30,000 for those age 50 or older.

*2023 IRA Contributions (Traditional, Roth, SEP) can be made up until the Federal Tax filing deadline of April 15th, 2024.

Remember, your financial well-being is a journey and a process.  By being proactive and informed, you can make the most of the year-end opportunities and pave the way for a secure and comfortable retirement.

Wishing you a prosperous year-end financial planning!

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