Day: November 22, 2024

It’s that time of year again! Before the busyness of the holiday season fully sets in, take a moment to check in on your financial wellness. This end-of-year checklist will guide you through some important steps to consider as you wrap up 2024 and prepare for a strong start to 2025. 1. Maximize 401(k) Contributions Your employer-sponsored retirement plan is a powerful tool for long-term financial health. Maximize your contributions as much as possible and take full advantage of any employer match, if available. For 2024, you can contribute $23,000 or $30,500 if you’re over 50. Check with your 401(k) service provider to ensure you’re on track to maximize your contributions by year-end or if additional contributions are needed. 2. Take Your RMD For those aged 73 and older, the IRS requires an annual minimum distribution, also know Required Minimum Distribution (RMD), from IRAs and 401(k)s. Since these accounts haven’t been taxed, this rule allows the IRS to begin collecting taxes. The RMD amount is based on your account balance and life expectancy. You may distribute more if needed, but you must at least distribute the minimum amount required, otherwise a penalty may be imposed. If you are 73 or