SMART MONEY MOVES: A YEAR-END FINANCIAL CHECKLIST FOR 2023

As we approach the end of another year, it's an opportune time to take a few moments to visit your financial plan. Let's explore some moves that could potentially make a positive to do before year-end.

Roth Conversion: Unlocking Tax-Free Growth

• A Roth conversion involves shifting funds from a traditional IRA or 401(k) into a Roth account. While you'll face taxes on the conversion, the potential benefits are substantial – tax-free growth and income in retirement if you adhere to the rules.

Tax Lost Harvesting: Turning Losses into Gains

• If your investment portfolio has experienced losses, consider selling those underperforming assets before year-end. This tactic, known as tax loss harvesting, allows you to capitalize on losses, with the potential to claim up to $3,000 per year on your taxes (with the option to carry forward any excess losses). This has to be done correctly so it would be wise to seek the help of a financial advisor & tax professional.

Year-End Gifting to Charity: A Win-Win

• 'Tis the season for giving, and your generosity can benefit both you and your favorite nonprofits. Donations made before year-end can be claimed as deductions on your annual taxes, making it an ideal time to support causes close to your heart.

Contribute to HSA: Maximizing Health Savings

• Health Savings Accounts (HSAs) offer a triple tax advantage – contributions are tax-deductible, the account grows tax-free, and withdrawals for medical expenses are tax-free. For 2023, individuals can contribute up to $3,850, and families up to $7,750 (with an additional $1,000 for those aged 55 and above). Ensure you've maximized your 2023 contributions by year-end.

Max Out 401(k): Boosting Retirement Savings

• Take a moment to review your 401(k) contributions for 2023. You can contribute up to $22,500, and the year-end is the perfect time to assess whether you want to make any additional contributions before it resets next year.

Annual Gifting: Transferring Wealth Thoughtfully

• If you're in the wealth transfer stage, consider gifting before year-end. You can give up to $17,000 to each individual before incurring gift tax. It can be an important part of your wealth transfer strategy.

Required Minimum Distribution (RMD): Avoiding Penalties

• If you're required to take a distribution from your retirement accounts, ensure you've withdrawn the required amount. Failing to do so can result in penalties, so take a moment to confirm that your RMD needs are met.

By checking off these strategic financial moves, you're setting the stage for a financially sound start to the upcoming year. Remember, these tips are general in nature, and it's wise to consult with a financial professional to ensure they align with your specific situation. #YearEndFinance #SmartMoneyMoves #FinancialChecklist2023

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Past performance is no guarantee of future results.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

This material was prepared by LPL Financial, LLC.