As this year comes to a close, here are my top 3 important financial tasks to consider.

  1. Review Retirement Plan Contributions: Whether you contribute to a 401(k), 403(b), IRA, or Roth, look at your year-to-date contributions.  You can make 2020 contributions into IRAs and Roth IRAs until April 15, 2021 for tax purposes.  However, employer plans like the 401(k) and 403(b) require the contributions be made by Dec. 31, 2020 to qualify for tax purposes this year.  Having a plan to put the maximum amount you can afford into your tax-advantaged retirement accounts can help you build a positive financial future.
  2. Consider a Roth Conversion: If you’re unable to contribute to a Roth IRA directly, you may benefit from contributing to a Traditional IRA and then converting those funds into a Roth IRA.  While you may owe taxes on the amount that you convert this year (please consult your tax advisor), Roth IRAs can provide tax free growth and withdrawal over the long run.
  3. Review your health insurance deductibles and Flexible Spending Accounts (FSA): If you need some major medical work done in the near future, see how much of your annual deductible you have spent this year. It may be financially helpful to have that medical procedure done before the end of this year.  If you have a flex spending account that is a “use it or lose it” program, make sure you are not forfeiting funds at the end of year.

I hope this helps you end the year in a stronger financial position than you began it.


Shadowridge Asset Management, LLC does not offer tax planning or legal services, but may provide references to accounting, tax services or legal providers. They may also work with your attorney or independent tax or legal advisor.