Mark your calendar with important deadlines for taxes, savings account contributions and required minimum distributions.
Schedule some time to check in on your accounts, organize important documents and review your credit report.
Read up on RMDs: If over 72, take required minimum distributions (RMDs) from your IRAs and qualified plans. You must begin RMDs by April 1 the year after you turn 72. Subsequent distributions must be taken by Dec. 31 each year. That means if you reached 72 during 2020, and you delayed your 2020 initial RMD until April 1, 2021, you still have to take your 2021 RMD before Dec. 31, 2021. For more information, go to irs.gov/rmd.
Go house hunting: It’s homebuying season. If you’re considering buying or refinancing a home, keep an eye on mortgage rates and plan to review the terms with your advisor as such a major purchase will have an effect on your financial plan.
Mull over an extension: If applicable – particularly if you hold securities subject to income reallocation – ask your tax advisor if filing an extension with the IRS would be beneficial.
Restore balance to your portfolio: Similar to your retirement accounts, consider a seasonal review of your portfolio to ensure your allocation is optimal for your objectives.
Gear up: After the New Year’s fitness craze has subsided, spring is a great time to find deals on exercise equipment. That means everything from tech to tennis shoes, according to Wisebread. It’s also when deals on last year’s road bikes roll in. Just in time for pleasant cycling weather.
Conduct a cash-flow checkup: Make sure all expenses are considered, and that you’re still allocating enough to your savings, retirement and “rainy day” accounts.
Tidy up: Create a spring cleaning ritual and let go of the clutter consuming space in your home. Giving items away offers its own benefits – just remember to get a qualified appraisal for more valuable donations.Inspect your credit report: Making a habit of checking your credit report at least once a year can help you detect and dispute errors.
Talk to your advisor to make sure you don't miss any important financial planning dates in the coming months.
Withdrawals from tax-deferred accounts may be subject to income taxes, and prior to age 59 1/2 a 10% federal penalty tax may apply. Roth IRA owners must be 59 1/2 or older and have held the IRA for five years before tax-free withdrawals are permitted. The process of rebalancing may result in tax consequences. Asset allocation does not guarantee a profit nor protect against loss. Investment products are: not deposits, not FDIC/NCUA insured, not insured by any government agency, not bank guaranteed, subject to risk and may lose value. Raymond James financial advisors do not render legal or tax advice. Please consult a qualified professional regarding legal or tax advice.