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4 Financial Tasks You Should Complete Before Year-End

by AOG Wealth Management

Keeping your finances in order is a year-round task, and more the last quarter of the year as you prepare for tax season. For this reason, you should already focus on strategies that help reduce your taxable income before the year ends. AOG Wealth Management, your premier financial advisor in Washington, DC and Northern Virginia, shares four of these must-do tasks.

Financial Tasks

  1. Add to your health savings account (HSA). An HSA from your high deductible health plan can help you take care of medical expenses. It also reduces your taxable income through pre-tax contributions. This means you can use these funds for qualifying medical expenses without worrying about taxes. Since health savings accounts offer investment options, you would not need to use all of the funds every year. Instead, your pre-tax contributions will grow tax-free.
  2. Be sure to use your flexible savings account (FSA). This is another essential task that can help with your year-end financial planning in Washington, DC. This is similar to HSA except for a few minor differences. A medical flexible savings account can also help you pay for qualifying expenses with your pre-tax contributions. Nonetheless, you will need to use them during the year so that you will not have to forfeit your contributions. While a FSA will not provide other investment options, it will not require you to have a high deductible plan either.
  3. Donate. You may qualify for a charitable deduction by itemizing deductions on your tax return. If you are looking to contribute a sizable amount, consider doing so via appreciated securities. They allow for direct donation to the charity through a brokerage account. This lets you avoid capital gains taxes and get a deduction for the full market value on the gift’s date.
  4. Increase your contributions to a tax-advantaged retirement plan. While saving for retirement, be sure to reduce your taxable income. You may contribute a specified amount before the year ends if you have an employer-sponsored retirement plans. If you cannot provide the full amount, try to contribute enough to reach a full employer match.

If you need help dealing with your other year-end financial needs, turn to the expert in Reston wealth management. We can guide you with our professional services and quality solutions. Whether you need tax-efficient strategies to lower tax burden or maximize pre-tax investments, our team can meet your needs.

AOG Wealth Management can help you reach your financial goals. Call us today at (703) 757-8020 or fill out this form to schedule your consultation.

The article and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you consult your accountant, tax, or legal advisor with regard to your individual situation.

Category: Wealth Management