December Tax & Financial Deadlines
Important December Deadlines:
3 upcoming deadlines require some thought & planning...do please do NOT wait to address them!
#1. ROTH Conversions - 12/31/22
There are a lot of advantages to ROTH IRAs. The challenge people face is getting money INTO a ROTH (post-tax retirement account).
If you are considering moving money into a ROTH IRA from a Traditional IRA...the deadline for 2022 is 12/31/22
This provides an opportunity to pull money out of your Traditional IRA move into a Roth IRA at potentially lower rates than in 10+ years
(disclaimer: this is my opinion that rates are lower now than in future. The future rates are uncertain).
NOTE...ROTH Conversion are NOT just for retirees...young people can get even MORE benefit from this strategy!
This can be even more impactful for younger investors due to the very long time horizons until the money is needed.
Once in the Roth IRA, you can pull it out tax free.
December 31st is the deadline to complete this transfer.
#2. Setup Solo 401K - 12/31/22
If you are the only owner of your Fitness Business...and your team is all vendors/contractors...
That makes you the Sole Owner...and eligible for the SOLO 401K!
As your income grows, you will be faced with essentially 2 Retirement Plan choices:
Solo 401K
SEP IRA
Both allow for larger contributions...
HOWEVER...the deadline for establishing a Solo 401K is 12/31/22!
NOTE: 12/31/22 is for the PAPERWORK/ESTABLISHING...more time is allowed to put the money in.
This also applies if you are the only employee in your own S-Corp...you are eligible for the SOLO 401K!
I can not tell you how often I talk to people that are forced to do a SEP IRA rather than a SOLO 401K...
...mainly because they missed this deadline.
So please review your options with your Tax Advisor...NOW!!!
#3. Tax Planning & Tax Saving Strategies - 12/31/22
The deadline to save taxes and legally manipulate your taxable income ends on December 31st!
This is the time to sit down with a Tax Advisor and review what strategies make sense for you.
If you aren't hearing from your Accountant or Financial Planner...you might be missing huge tax saving opportunities.
Need our help? Schedule Meeting TODAY!
Have a great week!
Best
Pat
Disclaimer: This is meant to be educational. This is NOT advice for your specific situation. Please consult a qualified tax or financial professional before making or changing your financial situation.