For business owners, December can get crowded. A little planning in the fall makes it easier to finish the year on your terms instead of the calendar's.
Retirement plans
- Max out what you can. Check how much you and your employees have contributed this year, and whether there's room to do more before the year closes.
- Thinking about a new plan? Some plan types need to be set up before year-end to count for this tax year, while others can be opened later. Timing matters, so start the conversation early.
- Plan sponsor to-dos. If you offer a 401(k), confirm that required notices for next year have gone out and that any plan changes are documented.
Gifting and family
- Annual gifts. You can give up to the annual gift tax exclusion amount to as many people as you like each year without using any of your lifetime exemption. Gifts made in January count toward next year, not this one.
- Charitable giving. If you give regularly, consider whether to bunch gifts into one year, give appreciated investments instead of cash, or use a donor-advised fund.
- Required distributions. If you or a family member must take required minimum distributions, make sure they're done by December 31.
Questions to ask your CPA
- Should we accelerate expenses or equipment purchases into this year, or wait?
- Does it make sense to time bonuses or owner compensation differently?
- Are my estimated tax payments on track for the final installment?
- Are there investment losses we could harvest to offset gains?
Don't forget the paperwork
Year-end is a natural time to review beneficiary designations, confirm your buy-sell agreement still reflects what the business is worth, and make sure your estate documents match your wishes. We're happy to coordinate with your CPA and attorney so everyone is working from the same plan. Tell us the best time to reach you.
This article is for general education and is not individualized investment, tax or legal advice. Tax rules and contribution limits change; consult your tax professional and attorney about your situation before acting.
