Four Year-End Planning Tips

Four Year-End Planning Tips

“December 31st is the deadline for many planning opportunities.  Here are 4 important items to consider before the ball drops and we enter into 2015.

  1. Remember to take any Required Minimum Distributions (RMDs) from retirement accounts and inherited IRAs before the end of the year. Federal guidelines determine the accounts that are subject to RMDs, the amount of withdrawl based on one’s age, and whether distributions must be taken separately from each account or if they may be aggregated from multiple accounts. Failure to comply with requirements can result in stiff penalties equal to 50% of the required withdrawal, so it is important to understand the rules and how they apply.
  1. Complete all desired charitable giving for which you want a 2014 tax deduction. While proposals have been made to extend this deadline to April 15, at this time the deadline is still December 31st.
  1. Complete any desired contributions to any 529 college savings accounts that you would like counted toward 2014. Indiana currently offers its residents a state income tax credit for contributions up to $5,000 made to the state’s 529 plan.  This credit equals 20% of total contributions, with a maximum credit of $1,000 per tax return.  This can be a great way to help someone close to you pay for college while also providing a great tax benefit for yourself.
  1. Complete any desired gifts for this year to children, grandchildren, or others. The annual gift tax exclusion for 2014 is $14,000 per person.  This means that as an individual I can give up to $14,000 to every person I know or as a couple, my wife and I can give up to $28,000 to every person we know without using any of our lifetime gifting exemption.

When considering these and other planning options, you’re wise to work with a team of experienced professionals to help you make wise decisions.

For more helpful information like this, visit our website at  Thank you!”


Published: December 16, 2014

Authored by: Josh Wichman, MBA

Direct Phone: 812-602-6319


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The information in this material is only as current as the date indicated, and may be superseded by subsequent market events or for other reasons. While all information prepared in this document is believed to be accurate, any statements of opinion constitute only current opinions of Payne Wealth Partners, Inc., which are subject to change and which Payne Wealth Partners, Inc. does not undertake to update. Accordingly, you should not put undue reliance on these statements. The information does not attempt to examine all the facts and circumstances that may be relevant to an individual’s financial needs. Payne Wealth Partners, Inc. is not soliciting any action based on these statements.

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