Amid the hustle and bustle of the holiday season, you may or may not have forgotten to mark some important year-end financial deadlines in your calendar. These deadlines are some you don’t want to miss—especially if you’re trying to make every penny count toward your goals this year.
Here are some important financial deadlines to keep in mind as the year comes to an end:
Flexible Spending Accounts (FSA):
Deadline: December 31, 2023
Grace period: March 15, 2024
One of the benefits of having an FSA is the ability to use it for healthcare expenses throughout the year. But if your FSA has been collecting dust, you’ll want to use it before you lose it at the year-end financial deadline. While there are many positives to an FSA, one drawback is that any funds beyond $500 won’t roll over into the next year. In some cases, you might have a two-and-a-half-month grace period that allows you a bit more time to utilize your money before it’s lost. Check your FSA account for more information and deadlines.
401k Retirement Contributions:
Deadline: December 31, 2023
Want to max out your contributions before the end of the year? You’ve still got some time. The max contribution limit for 2023 is $22,500. If you’re 50 years old and older, you can utilize your catch-up contributions and max out for the year at $30,000. Remember, any contributions to your 401k account can save you money on your taxes as well.
IRA and Roth IRA Contributions:
Deadline: April 15, 2024
If you have an IRA or Roth IRA, you can rest easy. Your year-end financial deadline isn’t until taxes are due next spring. That means you still have some time to keep working on your contributions. Just make sure if you’re under the age of 50, you contribute a maximum of $6,500 in 2023. If you’re 50 years or older, you can contribute up to $7,500. For more information on contributions, limits, deductions, and more, visit IRS.gov.
IRA conversions
Deadline: December 31, 2023
Want to convert an old 401k account? Maybe you have a traditional IRA that you want to convert into a tax-free growth account. Either way, converting to a Roth IRA may be a great next step for you. Talk to your financial advisor to see if this makes sense for your financial goals this year.
Yearly Required Minimum Distributions
Deadline: December 31, 2023
If you’re 70.5 years old or older, the IRS requires you to take a minimum withdrawal from your retirement accounts. The required amount is different for everyone based on how much is in the account from the previous year, how old you are, and more. To learn more about required minimum distributions and what accounts this applies to, visit IRS.gov.
529 College Savings Contributions
Deadline: December 31, 2023
Are you planning on contributing to a child’s 529 college savings account this year? Your deadline is coming up quickly—December 31 is the last day to contribute. Keep in mind these accounts are limited to a $17,000 gift per person, per year.
Investors should carefully consider the investment objectives, risks, charges and expenses associated with 529 college savings plans before investing. More information about 529 college savings plans is available in the issuer’s official statement. The official statement is available through your financial advisor, and should be read carefully before investing. Before investing, it is important to consider whether the investor’s or designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program.
Charitable Contributions
Deadline: Mid-December
It’s never too late to be generous. But if you’re hoping to help a charity or non-profit organization as part of your 2023 tax strategy, you’ll want to make your contributions now. Many organizations have a mid-December cut-off for collecting current-year contributions.
We hope these year-end financial deadlines will help you as you seek to end the year on a solid financial foot. Connect with a SageSpring Wealth Partner. We’d love to help you make sure you’re ending the year strong financially.
