Significant Year End Deadlines For Investors

• Taxpayers who are over age 70 ½ are generally required to take distributions from their individual retirement accounts and workplace retirement plans by the end of 2019. However, a special rule allows those who reached 70 ½ in 2019 to wait until April 1, 2020, to receive them.
• Most workplace retirement account contributions should be made by the end of the year, but taxpayers can make 2019 IRA contributions until April 15, 2020. For 2019, the basic limit for 401(k) contributions is $19,000, plus another $6,000 for those who are at least age 50.
• For 2019, total contributions to all traditional and Roth IRAs cannot exceed $6,000, or for taxpayers age 50 and older, $7,000. Taxpayers should check IRS.gov for more information about contribution limits, as well as cost-of-living adjustments affecting pension plans and other retirement-related items for tax year 2019.
• Some taxpayers may be eligible for the Retirement Savings Contributions Credit, also known as the Saver’s Credit. The income limit is $64,000 for married couples filing jointly, $48,000 for heads of household, and $32,000 for singles and married individuals filing separately for 2019.

• Deadline is December 20, 2019, to submit forms for conversion to a Roth IRA.

• For Plan year 2019, a QRP must be opened by December 31, 2019.
• Contributions can be made in 2020 but the plan must be opened in the calendar year the taxpayer will want the deduction for.

• For most taxpayers, December 31 is the last day to take actions that will impact their 2019 tax return. For example, those who plan to itemize deductions should know that charitable contributions are deductible in the year made. Donations charged to a credit card before the end of 2019 count for the 2019 tax year, even if the bill isn’t paid until 2020. Checks to a charity count for 2019 if they are mailed by the last day of the year.
• Strategic dates to keep in mind for “gifting:”

o December 20, 2019, for gift requests of Mutual Funds

o December 20, 2019, for gift requests of custodian accounts
o December 20, 2019, for cash delivered via check / wire

o December 20, 2019, for gift requests of Equities and Fixed-Income products

• To change or review cost basis election the client should reach out to their advisor or Custodian before the end of the year, December 31, 2019.