Year End Tax Planning
by John DeLeon
1. Covid Implications
1.1. Roth Conversions If lower tax bracket
1.1.1. Rollover IRA if left job
1.2. 401K Distributions if affected by covid
1.3. Some 401k plans allow for Roth conversions within workplace 401k
2. Long Term Planning
2.1. Tax Flexibility of portfolio
2.1.1. Pretax Accounts
2.1.2. Roth Accounts
2.1.3. Taxable Accounts
2.2. Documentation Planning
2.2.1. HSA
2.2.2. Business Receipts
2.3. Read documentation on 401k Plans
2.3.1. Can I do a mega backdoor roth?
2.3.2. Fees on plan?
2.4. Healthcare Planning after work ends
3. Disclaimer
3.1. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
4. Before Year End
4.1. 401k Max
4.2. Solo 401K
4.3. Harvest Capital Gains
4.3.1. No need to worry about wash sales
4.4. Harvest Tax Losses
4.4.1. Watch out for wash sale treatment
4.5. Qualified Business tax deductions
4.5.1. Front load expenses if cash basis
4.5.2. Credit card expense drives expense, not payoff
4.6. Charitable Contributions
4.6.1. In 2020 there's now $300 deduction (per tax return) you can get without itemizing
4.7. Inherited IRA
4.7.1. RMD 10 year rule
4.7.1.1. Roth
4.7.1.2. Deductible
5. Before April 15th
5.1. Contribute to IRA
5.1.1. Roth
5.1.2. Deductible