By Year End
- Fund Health Savings Account (HSA): For 2019, those in high-deductible health-insurance plans can contribute as much as $3,500 before taxes. For families, the figure is $7,000 and those age 55 and older can contribute an additional $1,000.
- Spend flex dollars: Unused funds in Flexible Spending Accounts are typically forfeited at year’s end, so make sure to tap them for eligible health and medical expenses by December 31. Some plans offer a “grace period” or may allow you to carry over some to use in the following year. Bottom line, check with your employer to confirm your plan’s deadlines.
- Contribute to a 529: Such contributions must be made before the end of the year in order to take advantage of any state-income-tax benefits or to be eligible for the federal gift-tax exclusion.
By Next Spring
- File taxes: Tax Day falls on April 15 in 2020. Even if you’re applying for an extension, you still must pay any taxes due by this date.
- Fund Individual Retirement Account (IRA): You also have until April 15, 2019, to max out your IRA for the 2019 tax year ($6,000 or $7,000 if you’re age 50 or older).
Annually
- Revisit tax withholding: Changes in dependents, income and marital status can all affect your tax bill. Use the IRS’s withholding calculator to ensure you’re withholding enough—but not too much.
- Confirm beneficiary designations: Make sure your current designations are still in line with your estate plan.
- Check your credit reports: Under the Fair Credit Reporting Act, each of the national credit-reporting agencies is required to provide you with a free copy of your credit report, upon request, once every 12 months. Get yours at annualcreditreport.com.
- Review your insurance needs: Make sure your loved ones and the things you’ve worked so hard for are protected. Ensure that there are no gaps in your home, auto, business insurance coverage.
Disclosures
Some of this information and data provided from Charles Schwab & Co. This information does not constitute and is not intended to be a substitute for specific individualized legal or estate-planning advice. Where specific advice is necessary or appropriate, we recommend consultation with a qualified advisor, CPA, estate planner or attorney.
The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.
All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers are obtained from what are considered reliable sources. However, their accuracy, completeness or reliability cannot be guaranteed.