‘Tis the Season for Year-End Planning: Tip #1

The end of the year is the perfect time to take a step back and review your entire financial health. Starting today, we’ll be sharing seven simple items you can cross off your list in the last few weeks of 2017.

Tip 1: Review Your Retirement Contributions

In 2018, the maximum contribution limit for 401(k) plans will rise to $18,500, while the limit for traditional and Roth IRAs remains at $5,500. If you’re 50 or older, remember that you’re eligible to make catch-up contributions of $6,000 to your 401(k) plan, and of $1,000 to your traditional or Roth IRAs.

Year-End Planning Prep-Review Your 401k Contributions

If you’re not maximizing your contributions to reach these limits, take a look at your budget. Do you expect to receive a bonus or a raise this year? If so, put those funds toward your contributions. If you’re making Roth contributions to your 401(k) plan, it’s also a good time to regroup with your accountant and financial advisor to evaluate whether that’s still the most optimal strategy for your situation.

If you’re self-employed, you may consider establishing and contributing to a SEP IRA or a Solo 401(k) plan to help boost your retirement savings. These contributions can also decrease your taxable income in the tax year attributable to the contribution.

If you opt for the latter, remember that Solo 401(k) plans must be established by December 31, 2017. You can make contributions to either of these retirement vehicles until the extended due date of your tax return.

Need our help working through your year-end planning checklist? Find an advisor near you.

LEARN MORE

Hewins Financial Advisors, LLC d/b/a Wipfli Hewins Investment Advisors, LLC (“Hewins”) is an investment advisor registered with the U.S. Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940. Hewins is a proud affiliate of Wipfli LLP. Information pertaining to Hewins’ advisory operations, services and fees is set forth in Hewins’ current Form ADV Part 2A brochure, copies of which are available upon request at no cost or at www.adviserinfo.sec.gov. The views expressed by the author are the author’s alone and do not necessarily represent the views of Hewins or its affiliates. The information contained in any third-party resource cited herein is not owned or controlled by Hewins, and Hewins does not guarantee the accuracy or reliability of any information that may be found in such resources. Links to any third-party resource are provided as a courtesy for reference only and are not intended to be, and do not act as, an endorsement by Hewins of the third party or any of its content or use of its content. The standard information provided in this blog is for general purposes only and should not be construed as, or used as a substitute for, financial, investment or other professional advice. If you have questions regarding your financial situation, you should consult your financial planner, investment advisor, attorney or other professional. Hewins does not provide tax, accounting or legal services.
OneBite Editorial Staff
OneBite Editorial Staff

OneBite® is a Top 50 Financial Advisor Blog powered by Hewins Financial Advisors. Founded in 2011, the digital magazine is dedicated to providing intelligent, in-depth coverage and analysis of the top financial and economic issues facing investors today.

No Comments Yet

Comments are closed

‘Tis the Season for Year-End Planning: Tip #1

time to read: 1 min