Year-End Planning Tips



If you haven’t done so yet, you and your spouse have until the end of the year to gift up to $14,000 each to friends and/or family members ($28,000 from both spouses combined). This is the maximum per person amount you can give away to help reduce or avoid federal gift or estate taxes, or count toward your lifetime exemption. Gifting is an excellent way to remove assets from your estate to reduce the impact of estate taxes down the road, and it makes for a highly appreciated holiday gift for loved ones.

In 34 states, you can gift even more if the recipients are college students by contributing money to a 529 college savings plan on their behalf, and/or make tuition payments directly to their university and pay no gift tax. These contributions are also generally exempt from estate taxes — even if they are in addition to the $14,000 a year limit.

Click here to read “Savvy Year-End Tax Moves”

Click here to read “State Tax Deductions for 529 Contributors”

Required Minimum Distributions

Seniors over age 70½ should take required minimum distributions (RMD) from tax-deferred retirement accounts before the end of the year. If not, any amount short of your RMD may be subject to a 50 percent penalty tax on top of regular income taxes on the full RMD amount. If you didn’t turn 70½ until this year, you actually have until April 1, 2015 to take your 2014 distribution. However, if you wait you’ll be required to take two distributions by Dec. 31 of next year, which could push you into a higher tax bracket on your 2015 tax return.

Click here to read “Ten Things to do Before Year-End” .

Our firm assists retirees and pre-retirees in the creation of retirement strategies utilizing insurance and investment products. If we can be of any assistance to you with your year-end financial planning, please call us at 801-990-5055 .

Advisory services offered through B.O.S.S. Retirement Advisors, a Registered Investment Advisory firm, and offered through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor. Insurance products and services offered through B.O.S.S. Retirement Solutions. Our firm is not affiliated with the U.S. government or any governmental agency. The information contained in this material is given for informational purposes only, and no statement contained herein shall constitute tax, legal or investment advice. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. You should seek advice on legal and tax questions from an independent attorney or tax advisor.

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