October through December is prime planning season for retirees. Certified financial planners say these five topics deserve a year-end conversation.
RMD Timing
Required minimum distributions generally begin at age 73 and must be taken by December 31 each year. Planners say missing the deadline can trigger a steep IRS penalty, so confirm timing early.
Roth Conversions
Converting traditional IRA funds to a Roth means paying tax now for tax-free withdrawals later. Planners say low-income years can make conversions worth discussing, since the tax lands this year. The trade-off deserves professional modeling.
Charitable Giving Through QCDs
Adults 70 and older can send IRA funds directly to charity through qualified charitable distributions, which can satisfy RMDs without adding to taxable income. The IRS allows more than $100,000 per year this way. Planners call QCDs a top tax-efficient giving strategy.
Tax-Loss Harvesting
Selling investments at a loss can offset capital gains elsewhere, reducing the year’s tax bill. Planners recommend reviewing taxable accounts before December, while warning against wash-sale violations. An advisor can spot opportunities amateurs miss.
Reviewing Beneficiaries
Retirement accounts pass by beneficiary designation, not by will, so outdated forms can send money to the wrong person. Planners recommend checking every account after marriages, divorces, births, or deaths. It takes minutes.
Sources: IRS, National Foundation for Credit Counseling, AARP
