1. Required Minimum Distributions (RMDs)
Deadline for Taking RMDs: Individuals who turned 73 in 2023 must take their first Required Minimum Distribution (RMD) from retirement accounts (e.g., 401(k), IRA) by December 31, 2024. Failure to do so can result in a 25% penalty on the amount not withdrawn.
2. IRA Contributions
Deadline for IRA Contributions: While the deadline for contributing to an IRA is typically April 15th for the previous tax year, contributions to IRAs for the 2024 tax year must be made by December 31, 2024 if you want them to be counted towards your 2024 tax return.
3. Flexible Spending Accounts (FSAs)
Use or Lose Rule: For some FSAs, December 31st is the last day to use any remaining funds. Check your plan details to ensure you don’t lose the balance.
4. Tax-Loss Harvesting
Deadline for Tax-Loss Harvesting: To reduce taxable gains, investors must sell losing investments by December 31st. This is the final day of the year to realize losses to offset gains and lower your tax liabity.
5. Charitable Donations
Deadline for Charitable Deductions: Contributions to qualifying charitable organizations must be made by December 31st to be deducted on the current year's tax return.
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