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A Realistic New Year’s Resolution

A Realistic New Year’s Resolution

Some New Year’s resolutions are more realistic than others. A realistic goal for everyone is to make a financial calendar for the upcoming year. This should include universal deadlines such as April 15th, and dates particular to you, such as insurance renewal dates, salary raises, and financial reviews. Starting the year off with knowledge of all important financial dates for the year can help you plan ahead, and ensure you aren’t caught off guard or scheduling too many events around the same time. Here are some important dates for everyone to remember.

Q1

January 1st is the first day you contribute to traditional and Roth 401(k)s, IRAs and SEPs for the new year. It may be helpful to mark a few dates throughout the year with contributions goals. January 15th is the due date for estimated taxes from the fourth quarter of the previous year. March 31st is the last day to enroll in Medicare to start coverage on July 1st to avoid a late enrollment fee, and the last day to submit claims for eligible medical expenses from the previous year for many flexible spending accounts.

Q2

April 1st is the last day to take your first IRA required minimum distribution without a penalty. Tax day is April 15th, which is the last day to file income taxes or apply for an extension, as well as the last day to contribute to a traditional or Roth IRA and HSA for the previous year. June 15th is the two month filing extension deadline for federal taxes, which is automatically given to Americans living abroad. Estimated taxes for Q2 are due June 17th.

Q3

Estimated taxes for Q3 are due on September 16th. September 30th is the last day to determine beneficiaries after an IRA owner’s death. Extended trust and estate taxes are due October 1st.

Q4

Employers typically announce upcoming open enrollment periods to choose benefits for the next year in October. October 15th is the six-month filing extension deadline for federal taxes, the last day to undo a conversion from a traditional IRA to a Roth IRA, and the last day to contribute to an SEP IRA for the self-employed and self-business owners. There are usually many financial actions you must do by the end of the year, making it very busy and even stressful. December 31st is the last day to take RMDs from an IRA, 401(k), and inherited IRA, set up most types of retirement accounts so contributions count for the current year, and for itemized deductions, stocks, and gifts to count for taxes for the current year. Remember to make the most out of your RMDs.

Knowing about end-of-year deadlines ahead of time can make the holiday season less stressful and more focused on family and celebration and making a financial calendar in the beginning of the year will put you in the right mindset for achieving your financial goals. At Epstein & White, we’re here to help you keep track of all things retirement. Click here to schedule your no cost, no obligation financial review and start your year off right.

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