Consider These End-of-Year Tax Tasks! It’s Time to Wrap Up 2022
Look Into a Roth Conversion If you were to do a Roth IRA conversion before the Dec. 31 deadline, you would pay tax on the funds you convert, with the perk of being able to withdraw them tax-free down the road. If we see tax increases in the future, this is one way to prepare and get ahead of the game. It should be noted that Roth IRA conversions are not reversible and the funds cannot be withdrawn without a penalty until five years after the conversion takes place, and typically until you are 59 ½ years old. If you are interested in a Roth IRA conversion but not sure where to start, that’s where we come in. We are here to help. We know this time of year is busy for everyone, but make sure your financial and tax well-being does not get lost in the holiday rush! To discuss your individualized tax minimization strategy for now and the future, give us a call today!
This time of year, holiday meal shopping lists, gift lists, holiday agendas, and sending out cards are at the top of your priority list. But, don’t forget your end-of-year financial checklist!
Dec. 31 is the deadline to complete many tasks that will make a difference when you file your taxes next year. Here are some things to add to your to-do list before the new year rolls around. Review Retirement Account Contributions Although the end of the year is near, it’s still not too late to max out your IRA, 401(k), or other retirement accounts for 2022. This year, employees participating in most 457 plans, the government’s Thrift Savings Plan, and 401(k)s can contribute up to $20,500. Finish Making Charitable Donations If you itemize your taxes, all qualified charitable contributions can be deducted! After all, it is the season of giving! Be sure to check just how much you can donate to charities tax-free.
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Protecting Your Accounts From Cyberthreats Especially during the holiday season with online shopping at the highest point of the year, it’s important to protect your retirement savings from cybercriminals. Retirement account fraud is a common financial crime, thus it’s important to take the right steps to protect your accounts and information from cybersecurity threats. Let’s take a look at three ways to ensure your retirement accounts stay safe! suspicious activity. Because it’s becoming more difficult for criminals to hack bank accounts, many are homing in on retirement accounts instead. Do not open suspicious emails.
or text message, as communicated on their website. So, if you receive an email from a sender claiming to be the IRS asking you to click on a link or provide personal information, do not click on it or provide your information! While the internet is an extremely useful tool, especially for researching holiday recipes and purchasing gifts, it comes with a giant risk when it comes to financial accounts and personal information — it’s important to protect our accounts from cyberattacks as well as market downturns. If you’d like to discuss any retirement concerns or have questions about your 401(k), give us a call today!
As a general rule of thumb, if you receive a strange email from someone claiming to be your 401(k) provider, and something just doesn’t look right, don’t open it. On that note, also avoid clicking on or interacting with pop-up windows, attachments, and links from any sender you do not recognize. These strange links and emails may be phishing attempts from criminals. Ignore emails from the IRS. The IRS does not communicate via email
Keep a watchful eye on your 401(k). Understandably, your retirement account may be something you rarely check. However, just like you monitor your credit card statement, it’s important that you watch your 401(k) account for
2 • CampbellWealth.com
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