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The end of the year is often a busy season when social calendars are full and people’s minds are focused on the holidays, but it’s also important to take time in December to assess your financial health.

David Ragland, CEO of IRC Wealth and a certified financial planner, provided FOX Business with a year-end checklist to knock out this month before ringing in 2023.

These money moves could save you a lot of dough in December. (iStock / iStock)

401(k) is moving

Ragland says the top priority for employees is maxing out their 401(k) contributions. Accounts are some of the best tax and long-term investment plans available to employees. People under 50 can sock up to $20,500 into a 401(k) this year, and anyone 50+ is allowed to contribute up to $27,000.

Next year, the limits will be raised to $22,500 and $30,000, respectively.


Investors may also want to consider a year-end rebalance of their 401(k) investment account to make sure they are not over-exposed to any particular areas. “Nothing wins forever,” Ragland explains.

Call the doctor

People who have already reached the out-of-pocket maximum on their health insurance plans should consider scheduling visits with doctors or other health care providers before the end of the year to minimize any runoff. out of pocket expenses.


Anyone who has met their health insurance deductible should try to cut off any necessary visits to health care providers by the end of the year to minimize their out-of-pocket costs. (Craig F. Walker/The Boston Globe via Getty Images/Getty Images)

Tax issues

Ragland advises people to meet with their CPA or other tax professional before the end of the year to review their estimated tax liability for 2022 and make plans on how to reduce it.

You can file a new Form W-4 with your employer to adjust your withholdings. It won’t reduce your 2022 tax liability, but it may prevent you from paying tax next year.

You can make an estimated tax payment by January 17, 2023 to reduce your 2022 tax liability. You can either pay by mail or pay online.

financial planning

Experts recommend meeting with a tax professional before the end of the year to find ways to reduce your tax liability. (iStock / iStock)

Anyone who lives in a state with State Tax Credits should review availability and make such purchases sooner rather than later, he advises. Some state tax credits are running out, so it’s best not to wait until the last minute.

Ragland says some individuals might consider selling an investment that is currently at a loss and buying back the same investment 31 days later. The strategy takes a hit for tax purposes by not giving up a favorite stock or exchange-traded fund (ETF) for good.

The wealth expert also pointed out some tried-and-true practices, such as making annual cash charitable contributions before the end of the year, and donating clothing or furniture to a favorite charity for a non-cash charitable deduction. Those who contribute monthly to the charity may also consider making their donation for the first quarter of 2023 this month.

The IRS says your tax refund could be smaller in 2023. here’s why

Another item on the personal finance to-do list is paying any state income or property taxes that are due by the end of the year, as well as paying the January 15th estimated state income tax.

Ragland says taking the time to assess your personal finances, develop goals and follow a plan is key. “Getting rich is too simple,” he told FOX Business. “It’s just not easy.”



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