Equipping you to be an informed investor

Year End Planning Opportunities for 2023
December 1, 2023

We hope that you had a great Thanksgiving weekend. The sounds of holiday music all around is another reminder that year-end is quickly approaching. To that end, please keep in mind some important planning items to the extent we have not already discussed these together.

• Managing Income/Expenses
  Evaluate your likely taxable income for this year and next year and decide whether to accelerate the realization of income or deductions in the coming weeks (where possible).
  • Note: for anyone receiving Social Security benefits, your annual benefits are scheduled to increase 3.2% in 2024.


• Annual Gifting/529 Plan Contributions
  Under the annual gift-tax exclusion, you can gift up to $17,000 every year to any person (a married couple can gift $34,000 to each child) with no gift/estate tax implications. Gifts can be made as direct gifts, gifts to trusts, and contributions to 529 plans. Consistently taking advantage of annual gifting can have significant long-term benefits.
  • Please let us know if you would like to discuss if/how you should make such gifts this year.
  • Note: the exclusion amount will increase to $18,000 in 2024.


• Major Gifting
  The lifetime federal estate and gift tax exemption is slated to increase from $12.93 million to $13.61 million in 2024.
  • Please contact us if you are planning on making any additional significant gifts before year end so we can discuss any potential implications of doing so and whether delaying until next year makes sense


• Charitable Contributions to Donor Advised Fund
  Make sure that any donations either made directly to individual charities or to Donor Advised Funds are completed before the end of the year. When possible, using appreciated securities and/or making Qualified Charitable Distributions from an IRA for such gifts can have significant tax advantages. Depending on your total tax deductions this year, a strategy of “bunching” future contributions may make sense.


• Retirement Plan Contributions
  If you participate in a 401(k) or similar retirement plan, determine whether you have contributed the maximum allowable (or affordable) amount for the year. The current contribution limit is $22,500 for those under 50 years old and $30,000 for those older than 50. For those of you that own closely-held businesses, the contribution limits may depend on the plan type and/or economic performance of the business entity in 2023.
  • Please make sure to adjust your contribution amount with your employer or record keeper early in the new year as the annual limits will increase to $23,000 and $30,500 respectively, in 2024.


• Cash Management
  Given (i) interest rates are as high as they have been in decades and (ii) it’s possible that the Federal Reserve cuts rates in 2024, it’s important to have a strategy for managing excess cash above your “emergency fund”.
  • Please let us know if you have excess cash and want to discuss how to address.

Please don’t hesitate to let us know if you have any questions. In the meantime, wishing you all the best this holiday season!