December, 2022 » Brock CPA
Taxes

Ready to Ring in the New Year? Take Time to Talk Taxes First

As the New Year approaches, it’s a good time to reflect on your financial situation and make any necessary adjustments to potentially lower your tax burden. Maximizing your retirement contributions is one area to consider, with those 50 and over allowed to make pre-tax contributions to a 401(k) of up to $27,000 per year.

Taking stock of your stock options is also important, as exercising them can have tax implications. Estimating your capital gains and losses before the end of the year can help you make informed decisions about selling securities or other assets, potentially changing your tax bracket.

It is also essential to evaluate your Health and Flexible Spending Accounts, as the funds in an HSA carry over to the next year, while unused funds in an FSA will be forfeited as of December 31st. Be sure to speak with your tax professional or financial advisor to help you make the most of these opportunities.