The 2021 Year End Clean Up
How is it already November? I’m old now, so I say that every month, but this year truly flew by. Rather than waiting until December to get some of the housekeeping stuff out of the way, let’s take care of it in November so we can just enjoy the holiday season! Here are four housekeeping items you can get done right now.
- Required Minimum Distributions (RMDs) are back this year. In 2020, due largely to the fallout from the pandemic and subsequent shutdowns, RMDs were made optional and many people elected not to take for the year. This year, the requirement is back. If you are 72 or older, you will again be required to take a distribution from your qualified retirement account (IRA, SEP, Simple or retirement plan) based on your age and the value of your account on December 31st of last year. Chat with your financial professional; they likely have software that automatically calculates the required distribution amount for you.
- Tax deductible donations are required to be received and processed by December 31st. Unlike IRA contributions, where you have until you file your taxes the following year, charitable giving must be done in the calendar year it is to be deducted. With giving at its peak around the holidays, charities and non-profits tend to get very busy with processing. To ensure timeliness of your donation, get it done as early as possible and emphasize the importance of the year in which it is processed.
- If you’re anything like me, there has probably been a line in your budget for the past six months for Christmas savings. If you’re a normal person, however, don’t forget to put all that extra holiday spending in your budget over the next couple months. This isn’t just Christmas presents; think of all the expenses that pop up around this time of year, from extra baking and holiday meals to snow tires and new winter coats for the kids.
- Medicare open enrollment started October 15th and ends December 7th. This is your opportunity to sign up for a plan or make changes to your existing coverage. Open enrollment for 2022 government provided healthcare through Marketplace began November 1st and ends on January 15th. Again, this is your opportunity to enroll or make changes to your current benefits.
Any opinions are those of Molly VanBinsbergen and not necessarily those of RJFS or Raymond James. The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the forgoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making investment decisions and does not constitute a recommendation. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.
