Once the calendar turns, most of your options for the year are gone. A short review in December is the cheapest tax planning there is.
Before December 31
- Top up 401(k) contributions through payroll.
- Harvest investment losses to offset gains.
- Make charitable gifts — and get the receipt.
- Take required minimum distributions if you are over 73.
- Use the remaining balance in a flexible spending account.
- Pay January’s estimated state tax in December if it helps you itemize.
Before April 15
IRA and HSA contributions for the year can still be made up to the filing deadline, so they are a useful last lever once you know your final numbers.
