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Year-End Planning Strategies to Consider

| November 26, 2019
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As the year end approaches, it is important to consider a variety of your planning needs as it relates to helping build, preserve, and transferring your wealth tax efficiently.  Below is a sample list of just a few items to consider when applicable:

 Investment Portfolios

Recognize capital gains/losses

Evaluate realized gains and potentially harvest losses to help minimize income tax consequences of the year’s market activity.


Review asset location

Allocate strategically by asset class and investment strategy across taxable, tax-deferred or tax-exempt accounts to potentially enhance after-tax returns.


Rebalance portfolios

Address unintentional portfolio drift by reallocating your portfolio to your target investment allocations.



Retirement Planning

Fund retirement accounts

Consider maximizing contributions to retirement accounts including catch-up contributions for investors who are age 50 and older by December 31, 2019.


Weigh Roth Conversion

Discuss with tax and other advisors whether it makes sense to fully or partially convert a Traditional IRA to Roth IRA.


Take Required Minimum Distributions

Individuals age 701/2 or older generally must take RMDs from many types of retirement accounts by Dec 31 with some exceptions.



Wealth Transfer & Legacy Planning

Make annual gifts

Annual gifts up to $15,000 per donor, per year can be made and are free from gift tax and do not count toward the estate tax exemption.


Fund charitable gifts

If charitably inclined, determine if it is beneficial to bunch multiple years of charitable gifts into a single year; evaluate funding with appreciated securities vs. cash for further potential tax benefits.


Consider federal estate tax reduction

Evaluate estate planning options and discuss strategies with a qualified tax or legal advisor including asset titling and various trust options.    


Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss. This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. Traditional IRA account owners should consider the tax ramifications, age and income restrictions in regards to executing a conversion from a Traditional IRA to a Roth IRA. The converted amount is generally subject to income taxation. No strategy can ensure success or protect against loss.

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