A Year End Checklist To control your Finances
A year-end checklist always gives you a number of ways to
take control of your finances—and possibly save on your taxes. Here are a few
to consider—just make sure you do them by December 31, 2012, as discussed by Charles
Schwab & Co.
1 Prepare for new tax
Review legislation related to cost basis reporting that could
affect your taxes.
2 Convert to a Roth IRA.
Compared to a Traditional IRA, a Roth IRA can give you
control over your income taxes when you start taking withdrawals from your
3 Turn losses into potential
If you decide to sell losing assets before 2013, you may be
able to use those capital losses to offset taxable capital gains.
4 Explore the tax advantages
of a 529 account.
Potential tax benefits await you when you open or contribute
to a 529 college savings plan for a child or grandchild before 2013.
5 Rebalance your portfolio
for the New Year.
Market swings cause investment allocations to shift.
6 Donate to a charitable
If you're planning to make a donation, do it before December
31, and you may be able to write it off on your 2012 taxes.
7 Take your required minimum
Once you reach age 70½, the IRS requires you to start taking
money out of Traditional, Rollover, SEP, or SIMPLE IRAs. Use our RMD Calculator
to estimate how much you'll need to withdraw.