Review your W2 and 1099s with your Independent CERTIFIED FINANCIAL PLANNER TM.
- Your 1099s and W2s provide valuable information about your earnings and investing habits. If your salary has increased, have you also increased your savings and investment rates?
- Apply income/salary to living expenses, and bonuses and stock options proceeds to retirement goals.
- If your mutual funds made sizable capital gains distributions, would you be better off holding low cost, tax-managed institutional funds in your taxable account(s)?
- Bump up contribution rates to accommodate new 401k limits: Investors can contribute a bit more to their company retirement plans in 2020 than they did last year: $19,500 for investors younger than 50 and $26,000 for those 50 and older.
Does your plan now also offer a Roth 401k option? If so, work with your Independent CERTIFIED FINANCIAL PLANNER TM to decide how much to contribute to the traditional 401k and how much to the Roth 401k.
While you’re at it, consider putting your other investment contributions, like to your taxable investment accounts for example, on auto pilot. Making auto monthly contributions allows your advisor to optimize targeted dollar cost averaging into your portfolio.
Is it time to increase contributions into your deferred compensation plan, if applicable?
Check in with your tax professional and gather tax documentation on deductible items: Tax day–April 15–will be here before you know it. If you’re considering itemizing your deductions, remember that they must exceed the standard deduction to be worthwhile. (For 2019, the standard deduction is $12,200 for individuals and $24,400 for married couples filing jointly.
- Some taxpayers may benefit from “bunching” their deductions, saving deductible outlays for a single year to exceed their standard deductions.
- Taxpayers subject to Required Minimum Contributions who are also charitably inclined may be better off making those charitable contributions directly from their IRA.