Important Year-End Tax Reminders

It is already December!  Time has a way of flying by, but it is not too late to help your clients consider the following year-end tax tips to help reduce their 2022 federal income tax liability.

• Review tax withholding and estimated payments – they don’t want to be exposed to fines for failing to withhold / pay the appropriate amount of income tax
• Review and understand the allowable deductions and credits – which may decrease the ultimate income tax liability
• Make those last-minute charitable gifts – remind them to keep records of the gifts
• If your client will be recognizing any capital gains, suggest having them consider harvesting tax losses to offset the gains
• Maximize contributions to employer-sponsored qualified plans – check with the plan administrator on the deadline to make adjustments to contributions
• Maximize deductibles for traditional IRA contributions (deadline for making 2022 contributions is April 18, 2023)
• For the traditional IRA holders – they can’t forget to take their RMDs! If they don’t need the income from the RMD, have them consider a qualified charitable distribution to reduce income AND satisfy RMD (a win-win!)
• For the beneficiaries of inherited IRAs – have them consult with their tax advisors on whether they need to take their 2022 RMD (have them mention IRS Notice 2022-53 to their Tax professional)
• If they expect to earn more in future years than they did in 2022, have them consider converting all or a portion of their traditional IRA to a Roth IRA before year-end!

The companies of National Life Group and their representatives do not offer tax or legal advice. Please recommend they seek tax or legal advice from their appropriate professional advisor.