With the hustle and bustle of our lives, it is easy to overlook several of the important financial dates for this month.
- December 31– Last day to take required minimum distributions for your IRA, 401(k) and inherited IRAs. You generally have to start taking withdrawals from your IRA, SEP IRA, SIMPLE IRA, or retirement plan account when you reach age 72. Financial institutions may require you to request distributions before the deadline to allow processing.
- December 31: Deadline to set up most types of retirement accounts so that eligible contributions count toward the current year.
- December 31 – Deadline for 2022 charitable contributions. Although there were expanded provisions for tax year 2021 that provided tax benefits for individuals, those special rules were not extended, but reverted back to prior tax years. Additionally, there are several provisions to help businesses who give to charity.
Create a Budget and Track Expenses
December is an excellent time to review expenses for the year, which can help with planning your budget for 2023.
For instance, are you planning a vacation in 2023 or will you wait for a later time?
Maybe you found yourself tapping your emergency or savings accounts during this year. If so, it will be important to replace those funds when you are able to do so.
Creating a budget or spending plan is important to maintain overall control of income and expenses. From spreadsheets, paper and pen to mobile apps, there are many ways track spending. Finding the method that works best for you is important to ensure your success and provide you with the peace of mind that comes when your finances are in order.
