Year-End Countdown: Key Deadlines You Can’t Afford to Miss

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As the year comes to a close, there are some important deadlines you shouldn't ignore. These deadlines affect your taxes, savings and potentially your financial future. Here's a simple guide to help you stay on track before this year's clock runs out.

Dec. 31: Retirement Contributions

Contribute to your 401(k) by the end of the year to manage your taxable income and potentially stash more money for retirement.

Dec. 31: Charitable Donations

Are you interested in charitable giving? You may want to contribute before the end of the year. You could use your charitable donations to help lower your bill at tax time.

Dec. 31: Use Up Your Flexible Spending Account

If you have a Flexible Spending Account (FSA)¹ for healthcare or childcare expenses, check how much money you have banked. Many of these accounts are "use it or lose it." Leftover money in your FSA might go away on Dec. 31, so spending it could work in your favor. Keep in mind that some accounts have "safe harbor" provisions that allow you to use these funds in the new year. Talk to your FSA administrator to see what options you have.

Dec. 31: Review Your Investments

It's a good idea to review your investments periodically throughout the year. But taking a look on Dec. 31 is even more important. If you made money in your non-retirement investments, you could end up with a tax bill. If you lost money, you could sell your investments at a loss to lower your tax bill. Ask your accountant if there are any investment moves you should make during the last part of the year.

Dec. 31: Review Your Tax Withholdings

Check how much tax was withheld from your paycheck over the last year. If your withholdings are too high, this may be an opportune time to adjust them and potentially help avoid a big tax bill or large refund after you file your taxes.

Jan. 15: Estimated Tax Payments

If you're self-employed or earn money that doesn't require you to withhold taxes — via disability, unemployment or investment income — you must make quarterly estimated tax payments. The final installment for this year is Jan. 15^th, so stick a note on the calendar to avoid a late-payment penalty.

April 15: IRA Contributions

Most year-end deadlines match the calendar year. But IRAs are one exception. Both traditional and Roth IRA contributions for this year may be made as late as April 15. That extra saving period could also mean a tax break. By waiting, you might assess your tax liability and figure out whether it makes more financial sense to contribute to a traditional IRA or a Roth IRA.²

Talk to a Financial Advisor

If you have questions about your end-of-year tax planning, a financial advisor may be able to assist. Financial advisors at BECU Investment Services are always here to help. Our team will take the time to get to know you, understand your goals and implement a retirement or investment strategy that's appropriate for you. Set up a complimentary consultation or call 206-439-5720 today.