Planning For Your Family Future

Protect Your Legacy Today!
Schedule

Checklist: 5 Financial Decisions to Consider Before December 31

December 25, 2022 •  Legacy Law LLC
This week, before the year ends, consider these 5 financial, retirement and tax actions you may need to take before it’s either too late or very costly for your family. And, if you have living parents in their 70s, make sure you cover these considerations with them this week. 01 - Review Your Investments to […]

This week, before the year ends, consider these 5 financial, retirement and tax actions you may need to take before it’s either too late or very costly for your family. And, if you have living parents in their 70s, make sure you cover these considerations with them this week.

01 - Review Your Investments to Harvest Losses This Year

If you have investments in a taxable account (including cryptocurrency investments), you may want to consider selling off any losers to offset any gains you have made. Selling losses can help reduce your tax liability for the year, if you have any capital gains, and then you can carry forward investment losses to offset capital gains in the future. 

If you are sitting with cryptocurrency losses that you haven’t recognized yet because you haven’t sold your cryptocurrency due to wanting to stay in the market for when crypto goes back up, you can have the best of both worlds. Sell your cryptocurrency now before the end of the year, and because the “wash sales” rules don’t apply to crypto tokens, you can buy the exact same tokens right back. In contrast,  with non-crypto investments, you’d have to wait 30 days to buy back into the same investment, in order to harvest non-crypto losses.

Once the year 2022 ends, you can no longer harvest losses to offset against 2022 capital gains.

02 - Contribute to a Retirement Account

If you have not yet reached your retirement account contribution limits for the year, you may want to consider contributing to a retirement account such as a 401(k) or traditional IRA. 

Here are the contribution limits for 2022:

  • 401(k), 403(b), and most other defined contribution plans: $19,500
  • Traditional and Roth IRAs: $6,000 (plus an additional $1,000 catch-up contribution for those age 50 or older)
  • SIMPLE IRA: $13,500 (plus an additional $3,000 catch-up contribution for those age 50 or older)
  • SEP IRA: 25% of salary, up to a maximum of $58,000

03 - Required minimum distributions (RMD) and qualified charitable distributions (QCD)

If you have a traditional IRA and you (or your parents) are age 73 or older, you (or they) need to take an RMD for 2022 by the end of the year. 

If you are 72 in 2022, you have until April 1, 2023 to take your first RMD. Failing to take an RMD can result in a penalty of 50%. If you don’t need the income, consider converting your RMD into a qualified charitable distribution (QCD), which is a tax-free transfer directly from your IRA to a charity of your choice, up to $100,000 per year. 

You must take RMDs or make a qualified charitable distribution by December 31, 2022, or you’ll pay the 50% penalty. Don’t miss this one.

04 - Inherited IRA Required Minimum Distributions 

If you inherited an IRA prior to the SECURE Act or if you are an eligible designated beneficiary who inherited in 2020 or 2021, you will need to take an RMD for this year. In addition, if you inherited an IRA this year, and the family member who left you that IRA did not take a required minimum distribution, you’ll need to take a year of death RMD this year, before the end of the year. 

Note: The IRS has waived the 50% penalty for 2022 RMDs that are not taken when a beneficiary is subject to the 10-year payout rule under the SECURE Act due to confusion surrounding this new rule. 

If you have an inherited IRA and you do not have a financial advisor, contact us to ask for our best recommendation for support.

05 - ROTH IRA Conversion

If you are considering converting to a Roth IRA, now may be a good time to do so, as tax rates are currently low and markets have come down from their previous highs. You will need to act quickly, as the deadline for converting for 2022 is December 31.

This article is a service of Bethany Gilson Casey, Personal Family Lawyer®. We do not just draft documents; we ensure you make informed and empowered decisions about life and death, for yourself and the people you love. That's why we offer a Family Wealth Planning Session™, during which you will get more financially organized than you’ve ever been before and make all the best choices for the people you love. You can begin by calling our office today to schedule a Family Wealth Planning Session and mention this article to find out how to get this $750 session at no charge.

Speak With an Attorney

Schedule

Schedule Now

Client Success Stories

Bethany was amazing very helpful and kind. Made me feel very comfortable in a rough situation. Made sure I got what I wanted set up and took care of me and my family. Awesome job. I recommend her 100%.
Cari Covolo
December 22, 2021.
Bethany was professional, very knowledgeable, personable, and easy to work with. She made the daunting task of setting up a will easy and seamless.
Amanda Larson
October 21, 2021.
Bethany was great! She explained the details of probate and how it works in detail. Our purpose was to protect our children in the untimely event of both of us passing at the same time. The estate planning put our minds at ease. She encourages us to follow up with her periodically and make sure everything is still in order. This impressed us, she cares.
Dale Arey
October 13, 2021.
Bethany was great to work with! We highly recommend Legacy Law. Bethany was always well prepared and made things feel simple and easy to understand. She made a process that can feel overwhelming feel simple and manageable to do. She is very organized, professional and caring. She did an excellent job in preparing all the estate documents and helping us create a living trust!
Carey Larson
October 8, 2021.
Bethany was really helpful in getting our trust set in place; she answered all our questions thoroughly and we have peace of mind that our estate and affairs are in order. Highly recommend!
Paul Alvey
September 6, 2021.
I was pretty nervous/unsure about needing a will/ trust and decided to explore my options. I found an introductory video on-line from Legacy Law. From there I set up a meeting with Bethany and went in with a boatload of questions. My questions were answered patiently and with great expertise. I never felt pressured and came out feeling reassured and comfortable with my choices/decisions. This was all done professionally and in a very timely manner. To this day, if I have a question all I have to do is give Bethany or Brynn a call. It is without hesitation that I recommend Legacy Law and their services.
Patsy Christensen
August 31, 2021.
Thank you LegacyLaw Estate planning was a breeze with them .
Deborah Doak
August 21, 2021.
Bethany was great! Very professional and personal. She was always able and willing to answer our questions and come up with the best solution for our needs. I highly recommend her for estate planning and to navigate all the legal intricacies related to that.
Jeff Wilson
August 20, 2021.
Bethany was very professional, reasonably priced and very thorough when working with us on our trust. We highly recommend her for very individualized planning and attention to detail.
Robin Schamber
August 9, 2021.
Bethany was very professional and easy to work with. She answered all my questions and helped me put together a good living trust that I feel comfortable with. I would highly recommend her to anyone who is thinking about estate planning.
Steve Boyd
August 3, 2021.
Legacy Law LLC

2620 Commercial Way, Ste. 160
Rock Springs WY 82901

Get Directions
Integrity Marketing Solutions - Estate Planning Marketing
Powered by
crosschevron-down