Paperwork Makes the Dream Work: 2023 Year End Deadlines + New 2024 Plan Contribution Limits
Much of our work with Modernist clients is about building comprehensive financial plans, then coordinating with our CPA friends to complete many of the types of projects below. If you’re DIYing it, keep these fun projects and deadlines in mind.
let’s prepare for the 12/31 deadline!
Due to labor shortages amid the usual end-of year paperwork rush, many financial institutions have moved their paperwork deadlines to the first week of December. Eek! So, get your requests in as early as possible to avoid the year-end rush. We’ve listed Modernist’s deadlines below, which likely also apply for other custodians and institutions.
Portfolios
If you need to sell assets to realize capital gains/losses for the year, let us (or your custodian) know before 12/01.
With markets down, Traditional IRA to Roth IRA conversions are on sale! Modernist’s clients must sign paperwork by 12/01.
Over 72 years old with an IRA? Complete your Required Minimum Distributions by 11/27, so we can have paperwork signed by 12/01.
Employee Benefits
If you would like to max out your 401(k) or 403(b) deferrals for 2023, increase your contributions now to defer the maximum possible.
If you have any Flexible Spending Account (FSA) dollars left, make sure to spend them before 12/31. You can carryover up to $610.
October and November are employee benefits renewal season. There is a lot of compensation built into benefits packages, so be sure to take advantage of all your options!
Change health insurance, max out your FSA, sign up for long-term disability insurance, take advantage of group life insurance rates, etc.
Feeling Generous to other folks?
If you want to make tax-exempt gifts to another person, the annual gift tax exclusion is $17,000 per person before 12/31.
To gift securities (stocks/bonds/mutual funds), let us (or your custodian) know by 11/27, so we can have paperwork signed by 12/01.
If someone would like to give you securities, reach out to us (or your custodian) ASAP for transfer instructions.
Feeling Generous to non-profits?
Charitable cash donation requests should be submitted to our team (or your custodian) before 11/27.
Charitable securities donation requests should be submitted to our team (or your custodian) by 11/27, so we can have paperwork signed by 12/01.
Over 70.5 years old with an IRA? Complete your Qualified Charitable Distributions by 11/27, so we can have paperwork signed by 12/01.
Feeling Generous to Non-Profits & Live in Oregon?
We love aligning our giving with the radical work of Seeding Justice. Their approach to philanthropy is transformative and community led, with a focus on justice and liberation.
If you’re already supporting Oregon arts non-profits, consider making a matching gift to the Oregon Cultural Trust.
Maximum tax credit amounts are $500 for individuals, $1,000 for couples filing jointly, and $2,500 for class C-corporations.
If you owe Oregon State Income tax this year, consider a donation to the Oregon IDA Initiative, which provides a 90% Oregon state tax credit and funds programs that reduce wealth inequality!
Hurry up! This option is based on available credits with the state. They go fast at the end of the year.
let’s Get ready for 2024
Hot off the press! Here are the new 2024 IRS Retirement Plan Contribution and Benefit Limits.
If you have automated contributions going to your 401k or IRA accounts, make sure to increase amounts to take advantage of this opportunity!
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