What to Know About End-of-Year Taxes

The Bird’s Eye View:

As the end of the year quickly approaches, here are some last-minute tax issues you need to get in order before Jan. 1, 2022. Find out how RMDs, charitable contributions, and more could impact your taxes.

Your Guide:

On this episode of Your Retirement Elevated podcast with Scott Dougan, we’re talking about end-of-year taxes and other things you should know about as we head into a new year.

We’re just finishing up year-end tax planning for our clients, and we did a year-end tax planning webinar. If you’re a client of ours and are reading this, we’ve got you covered. If you’re not a client yet, this is a good last-minute resource for you, and we’ve included a downloadable guide for you to reference.

There are some deadlines coming up that you’ll want to get on ASAP. Most tax planning needs to be done by Dec. 31. Things that can happen after the fact are contributing to a traditional IRA, a Roth IRA, for example. You have up to April 15 of the following year.

If there is any last-minute legislation pushed through by Congress this year, we’ll let you know about that.

It’s important to know that required minimum distributions are back in play in 2021. If you are 72 or older this year, you do need to take your RMD for your IRA or retiree employee plan. You’ve got to get that money out by Dec. 31 and pay Uncle Sam his fair share of those tax-deferred funds.

Something else to consider: Are you deferring money into a current plan? If you’re still working, you want to make sure you’re maxing out your company plan. Make sure you get all the money you want to get into that plan by Dec. 31. Contributions have to be done in the calendar year.

End of year checklist: Click Here

Listen to the full episode or use the timestamps below to find specific segments.

[3:47]Required minimum distributions

[5:01] – New legislation

[5:59] Contributions

[6:48] Tax review

[8:17] – Qualified charitable distribution

[9:47] – Estate planning, FSA, etc.

Thanks for checking out the Your Retirement Elevated Podcast. We’ll talk to you again on the next show.


Your Guide:

Home Insight About Scott

Scott Dougan, RFC, Investment Advisor – Contact