The fourth quarter is where legends are made.

The fourth quarter is where legends are made.

Michael Jordan, Kobe Bryant, Tom Brady, and as much as I hate to admit it, Eli Manning… so many great athletes are defined by their late game heroics, and their ability to adjust their plan and execute when it matters most. 

It’s no different when it comes to financial planning and tax planning.

Right now, we are in the 4th quarter, and time is running out to take advantage of certain opportunities that can help reduce your tax liability, keep more of your money in your own pocket, seek tax-free growth opportunities, or simply play by the rules. This time of year, investors consider…

• Contributing to their tax-advantaged account(s) at work, such as 401(k), 403(b), SIMPLE IRA, H.S.A., etc.

• Opening a retirement account to take advantage of any self-employment income, such as an Individual 401(k) plan 

• Saving for future educational expenses in a 529 could provide special tax benefits depending on what state you live in

• Converting tax-deferred assets over to a Roth account enables tax-free growth potential

• Harvesting losses to offset gains in taxable non-retirement accounts

• Taking advantage of the 2024 gift tax exclusion

• Donating to charity

• Taking Required Minimum Distributions (RMD) from their qualified retirement accounts IFthey are 73 or older

As a wealth advisor and fiduciary, I look to uncover untapped opportunities for my clients, but when you are making these important decisions, it’s a good idea to consult with a tax professional to ensure compliance with tax rules and regulations.

As you review this, if you have any questions or need anything, please let me know and I’d be happy to help.