Year End Financial Planning Checklist 2022

As we progress towards year end, there are some things to make sure we review in order to check all the boxes before 2023 arrives. Don’t let the distractions of this year keep you from properly planning in these different areas. Some are just good things to think through on an annual basis, while others have a deadline of tax time, or even year end. The Inflation Reduction Act introduced new rebates and credits, but these will be for 2023 on, not 2022, so plan accordingly. Let us know if you have any questions or want to discuss any of these items in more detail.


  • Retirement: Though most have deadlines of tax time, being on top of this by year end is a good idea.
    • Fund/max out Roths? (if eligible) Deadline is April 15th
    • Fund “back door Roth”? (If you don’t meet the eligibility requirements for funding directly and don’t currently have a balance in Traditional IRAs). Deadline is April 15th, but is much easier to track if done before year end due to the conversion.
    • Fund SEP if small business owner? (may need to wait on exact income to find out max amounts). Deadline is April 15th or up to your tax deadline if filing an extension.
    • Fund HSA? (If eligible): We have sung the praises of this account for some time, and its superior tax savings over other accounts. Let us know if you want to discuss this strategy. Deadline is April 15th. The individual max is $3650, and family max is $7300.


  • Giving:
    • Donor Advised Fund: fund before year end if wanting to get deduction for 2022.
    • Proactively review 2023 gifting goals and determine best method: Donor Advised Fund with itemized deductions (to gift away appreciated assets or multiple years’ clustered giving) vs standard deduction. Let us know if you want to discuss.
    • Qualified Charitable Distributions (QCD): QCDs (if you are over 70 ½ and have a required minimum distribution aka RMD) are an option to get a guaranteed deduction on your gifts to charity regardless of whether you itemize or take the standard deduction (12,950 individual/25,900 joint filers.) Deadline is year end.


  • Budget:
    • It is a great time to look back and examine expenses and budgeting for the year. This can help better plan for 2023 as you review cash, income, and possibly putting money to work, paying off debt, giving, etc… if you do this exercise, please share your results with us, especially if you are retired or soon to be.


  • Estate
    • Review wills and estate plans. Several impactful changes are possible in the future, and while probably not worth acting on pro-actively for most, may be worth reviewing the effects to your estate should the lifetime exemption be lowered and the estate tax associated with the amount over be raised.
    • Review beneficiaries on your accounts and ensure they are still correct. This includes 401k’s and employer sponsored plans as they are not as likely to be reviewed closely.


  • Tax:
    • Roth conversion plan: We are not sure yet what the tax landscape looks like in the future, though we can assume the chances of rates increasing versus decreasing are higher. So, in light of this, choosing to deliberately convert some of your taxable assets in IRA/401k/403b/457/etc… to a Roth could be worth considering. This would increase your income tax for 2022 but could ultimately lower your overall tax burden over your lifetime and give you more control of the taxes. This will also lower (potentially eliminate) your RMD in the future.
    • Consider your giving strategy (outlined above).


  • Goals:
    • Any major life events coming up in 2023? If so, let us know so we can properly plan or adjust if needed.
    • If any home renovations are planned, consider the new energy tax credits and rebates for appliances, etc… (see our recent article “Inflation Reduction Act.”


Simply taking this time to review your financial picture and ensure all is correct and addressed can go a long way to helping you hit your goals.  We also enjoy this time to look ahead and begin to lay out what you want to accomplish for 2023 and beyond.


We hope you have a wonderful and joyful Thanksgiving and Christmas season.



Jeremy & Eric