Start the new year with clarity instead of cleanup
December is already crowded. Between family plans and holiday prep, it’s easy to push money tasks to the side. But a few hours now could save you stress later.
As a Financial Advisor, I’ve watched clients scramble in early January because they missed a deadline or overlooked a planning opportunity. It’s not about perfection. It’s about starting the new year with clarity instead of cleanup.
Here are six items that might deserve attention before December 31st.
Required Minimum Distributions
If you’re 73 or older, the IRS requires you to take money from your traditional retirement accounts. Miss the deadline and you could face a penalty of up to 25% of what you should have withdrawn.
Most people handle this automatically. But if you have multiple accounts or changed custodians this year, double-checking could prevent an expensive surprise. Confirm the withdrawal happened. If it didn’t, contact your account holder immediately.
Roth Conversions
A Roth conversion moves money from a traditional IRA to a Roth IRA. You pay tax on the converted amount now, but future withdrawals could be tax-free.
Why consider this before year-end?
If your income dropped this year—maybe you retired mid-year or took time off—you might be in a lower tax bracket than usual. Converting now locks in that lower rate.
If you expect tax rates to rise in the future, paying taxes today could make sense. You’re essentially prepaying at a known rate instead of gambling on what Congress might do later.
The catch is immediate. Conversions increase your taxable income for the year. That could push you into a higher bracket or affect Medicare premiums. It’s not a move to rush. But if it fits your situation, December 31st is the deadline.
Some people convert in chunks over several years. Others do it all at once when circumstances align. The right approach depends on your income, your timeline, and what you expect your future to look like.
Tax-Smart Moves
Markets move. Your portfolio shifts. Sometimes that creates opportunities.
Tax-loss harvesting is one example. If you’re sitting on investments that have declined in value, selling them before year-end could offset gains elsewhere. That might lower your taxable income for the year.
You can use losses to offset gains dollar-for-dollar. If you have more losses than gains, you can deduct up to $3,000 against ordinary income. Anything beyond that carries forward to future years.
There are rules to navigate. The wash-sale rule prevents you from claiming a loss if you buy the same or substantially identical security within 30 days. But with careful planning, this strategy could reduce what you owe in April.
These decisions aren’t one-size-fits-all. They depend on your income, your goals, and what else is happening in your financial life.
Charitable Giving
If you give to charity, doing it before December 31st could reduce your tax bill. Cash donations are straightforward. But there are other approaches worth considering.
Qualified Charitable Distributions allow people over 70½ to send up to $105,000 directly from an IRA to a qualified charity. The distribution counts toward your RMD, and you don’t pay income tax on it.
Donating appreciated stock is another route. You avoid capital gains tax on the appreciation, and you can still deduct the full market value if you itemize.
Both strategies require planning. They’re not last-minute moves. But if giving is already part of your routine, structuring it thoughtfully could amplify the impact.
Account Review
When did you last look at your beneficiary designations?
Life changes. People marry, divorce, have kids, lose loved ones. But beneficiary forms often stay frozen in time. That creates problems when the unthinkable happens.
Review your retirement accounts, life insurance policies, and any investment accounts with transfer-on-death provisions. Make sure the names match your current intentions. If they don’t, request updated forms from your custodian or carrier.
Also check your contribution levels. If you maxed out your 401(k) or IRA early in the year, great. If not, you have until December 31st for 401(k) contributions and until Tax Day for IRA contributions. Every dollar you defer now could reduce taxable income for 2024.
Start January Clear
The goal isn’t to execute every possible financial maneuver. It’s to close out the year with fewer loose ends.
When January arrives, you won’t be chasing deadlines or fixing mistakes. You’ll have space to focus on what comes next. That’s what planning should feel like—proactive, not reactive.
Who I Am and How I Work
As a Financial Advisor, it’s my mission to build a client relationship that goes beyond financial investment. I am committed to putting my clients first by building relationships and providing value to them from day one. It’s not an investment in securities alone, but it begins with an investment in trust.
At Measured Financial, our expertise is to broaden your investment opportunities through investments not dependent on the whims of the stock market. You are treated with a personal touch and we strive for you to feel valued, heard and understood every time we interact with you. We take your trust seriously. That’s why we’re straightforward, honest and open in our communication with you.
Ready to Start?
If you’re carrying financial questions into the new year, let’s talk. Visit measuredfinancial.com/contact-page-alex-gibbs, fill out the contact form, and a member of our team will call you to schedule a conversation with me.
No pressure. Just a discussion about where you are and what might make sense next.
