12 Days of Year-End Questions to Ask Your Financial Advisor

By Heather Hoffman, Marketing and Communications Specialist

12/2024

You don’t need to actually spread these out over 12 days, but they are some good things to ask yourself or your financial advisor as the year winds down! Included are general answers that you can apply to your own personalized financial situation.

How much do I need to contribute to max out my 2024 retirement accounts?

Determine how much you’ve contributed, then subtract that from the total allowed for this year!

401(k) $23,000

401(k) for 50 and older: $30,500

IRA: $7,000

IRA for 50 and older: $8,000

HSA for individuals: $4,150 ($5,150 for age 50+)

HSA for families: $8,300 ($9,300 for age 50+)

How are 2025 contribution limits changing?

The IRA contribution limit will remain $7,000 with a catch-up limit of $1,000.

401(k) accounts are increasing $500, making the limit $23,500. The catch-up limit for those aged 50+ remains $7,500. A new catch-up limit for those 60-63 will be $11,250.

HSA accounts will increase to $4,300 for individuals and $8,550 for families. The catch-up limit will remain $1,000 for those 50 and older.

If you’re wanting to max any of these out, divide the limit by 12 to split it into a smaller, more manageable number.

I want to donate to charity- how can I save on taxes?

You can create a donor-advised fund, bunch donations, swap your RMD for a qualified charitable distribution (QCD), create a charitable remainder unitrust, or gift assets directly. Each comes with pros and cons, so be sure to pick the option that best accomplishes what you’re looking for!

How can I maximize my holiday bonus?

Depending on your situation, a holiday bonus has the potential to make a difference in your financial outlook. A few ways to maximize your bonus includes paying down high-interest debt, adding to your emergency fund, and making a retirement contribution. Maximizing your finances doesn’t mean only planning for the future. Your life now should still be prioritized, so go ahead and make that fun purchase you’ve been waiting for! (Within reason.) It’s important to find the right balance.

When do I need to take my Required Minimum Distribution (RMD)?

If you turned 73 this year, you have until April 1, 2025, to take your Required Minimum Distribution (RMD). If this isn’t your first RMD, then you will need to make your withdrawal by December 31, 2024. Starting this year, Roth accounts no longer require RMDs.

This is the first year I’m required to take an RMD; should I wait until April 1, 2025?

You have the option to, but many choose not to. If you wait to take your contribution in 2025, you will still need to take another before December 31, 2025. So, you’ll be stuck with two RMDs counting against your taxes. This could benefit you, or it could throw off your plan. Take your full financial picture into consideration before deciding!

When do I need to make my fourth quarter estimate tax payment?

You have until January 15, 2025, to complete your fourth quarter payment for the period of September 1- December 31.

When does tax-loss harvesting need to be done?

In order to use tax-loss harvesting for the 2024 tax year, you will need to sell the securities by the last trading day of the year, which is December 31, 2024.

What will my social security be for 2025?

2025 will see a 2.5% cost of living adjustment (COLA) for social security payments. You will be notified what this amount will be for you sometime this month.

What should my financial New Year’s resolution be?

This answer largely depends on your financial situation. Whatever you want to achieve, make it a SMART goal! This stands for specific, measurable, achievable, relevant, and time-bound. Tell your financial advisor about your goal, and they can help hold you accountable.

Do I need to rebalance my portfolio?

You can rebalance your portfolio at any time, but the end of the year is definitely a popular one. You should ensure your portfolio still has the risk tolerance that matches your preference and retirement timeline. The end of the year is also a good time to update your beneficiaries for your accounts. If your family gets together for a holiday, just look around the table and see if you have everyone you want to include!

How can I fit holiday gift giving into my plan?

Make sure you keep your long-term financial goals in mind. Create a separate gift budget, and stick to it! If you’re wondering how much you can comfortably spend, your financial advisor can help put it into perspective.

Knowing these answers can help you feel confident about your financial situation as we head into 2025!

The opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual.