December 06, 2024
Allworth financial advisor Jeremy Murray, CFP®, AIF®, CRPS®, explores actionable financial steps to take in December, helping clients maximize their savings, reduce taxes, and enter the new year with confidence.
With just a few weeks remaining in 2024, there’s still time to take a closer look at your finances. Whether you’re already retired or preparing for it, this time of year offers unique opportunities to ensure you’re set up for success as the calendar turns to 2025.
Here are some practical financial moves to consider before year-end:
As the year wraps up, it’s important to ensure you’re maximizing contributions to your retirement accounts. For 401(k) plans, the deadline to contribute for the 2024 tax year is December 31, so now is the time to make any final adjustments. For this year:
If you’re contributing to an IRA, you have a little more time. The deadline for IRA contributions for the 2024 tax year isn’t until April 15, 2025. This gives you the flexibility to contribute up to:
For retirees, now’s the time to double-check that you’ve taken your Required Minimum Distributions (RMDs) if you’re age 73 or older. Missing an RMD could result in a penalty of up to 25% of the amount you were supposed to withdraw. If you’re unsure, confirm with your advisor to ensure your accounts are in order.
The end of the year is a great time to review your taxable investment accounts and see if you can benefit from tax-loss harvesting or tax-gain harvesting. Both strategies can help optimize your taxes based on your financial situation:
December is a time of giving—and not just in spirit. Making a charitable contribution before December 31 can reduce your taxable income for 2024. If you’re over 70½, you might consider a Qualified Charitable Distribution (QCD) from your IRA. This allows you to donate up to $100,000 directly to a charity, satisfying your RMD while avoiding taxable income.
Alternatively, gifting appreciated assets like stocks or mutual funds can help you avoid capital gains taxes while still benefiting a cause you care about. It’s a win-win for you and the organization.
As life changes, your estate plan and beneficiary designations should reflect those updates. December is a great time to:
A quick review now can provide peace of mind heading into the new year.
If you have a health-related Flexible Spending Account (FSA), check if you have a “use-it-or-lose-it” balance. Some plans allow a carryover of a small amount, but many require funds to be spent by December 31. Eligible expenses may include:
Don’t let those hard-earned dollars go to waste—plan to use them before they expire.
While reviewing your 2024 finances, take time to set intentions for the coming year. Ask yourself:
Taking small steps now can make January feel less overwhelming and set you up for a strong start to 2025.
December may feel like a whirlwind, but carving out time to review your finances is worth the effort. A few smart moves now can help you finish 2024 strong and enter the new year feeling confident and in control.
If you have questions or want to discuss any of these ideas, feel free to reach out—I’m here to help you make the most of this year and plan for the next.
As a self-proclaimed “numbers guy”, I truly enjoy helping people make sense of something that can feel complicated and overwhelming. Most people don’t grow up learning financial literacy and wealth management. Yet, getting your finances in order is critical as you prepare to transition to retirement—a phase in life where you’ll be entirely financially independent.
I believe money is a tool that can be leveraged to provide the freedom you what. And I always strive to meet clients where they are in life, focus on educating them about their choices, and work to build a plan that’s achievable, comforting, and aligned with their goals.
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