1 minute read
Year End Financial Checklist
www.DanvilleLivingCA.com @DanvilleLivingCA #DanvilleLivingCA
By Matt Forrey and James Carbonell, RBC Wealth Management, Residents since 2009 and 2004
As the holidays approach, it can be difficult to find time to organize your financial life. While it may seem easier to push off your financial planning until next year and include it on your 2020 New Year’s resolutions, there are some financial strategies you may want to consider now:
• Make your charitable donations directly from your IRA:
Individuals over age 70 ½ can donate up to $100,000 from an IRA directly to a qualified charity without triggering any federal income taxes. As any income tax on the distribution is avoided, this may be beneficial to individuals who no longer are able to itemize contributions given the increase of the standard deduction under the new tax laws.
• Donate appreciated stock:
Contributing appreciated stock to charities in place of cash can reduce capital gains in your portfolio and generate a potential income tax deduction.
• Reduce pending capital gains:
Realizing capital losses before December 31st can offset gains that were realized during the year. In addition, up to $3,000 in losses can be used to offset ordinary income.
• Gift cash or assets:
Individuals may give any number of people up to $15,000 each in cash or assets without triggering gift, estate or generation-skipping taxes.
• Catch-up retirement contributions:
If you are 50 or older, you are entitled to make an additional $6,000 contribution to your company sponsored retirement plan or an additional $1,000 to a Traditional or Roth IRA.
Visit our website www.rbcwmfa.com/carbonellforreywmg/ for a complete copy of our year-end checklist.
RBC Wealth Management does not provide tax or legal advice. All decisions regarding the tax or legal implications of your investments should be made in connection with your independent tax or legal advisor.
Investment and insurance products: • Not insured by the FDIC or any other federal government agency • Not a deposit of, or guaranteed by, the bank or an affiliate of the bank • May lose value
© 2019 RBC Wealth Management, a division of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC. All rights reserved.
