Dear Friends and Family,

As we enter into year-end financial planning, please consider the below suggestions. If they seem appropriate to you, we welcome a conversation.

• Contribute to your IRA (and spouse’s IRA) annually.
• Place high-yield stocks in tax-deferred accounts to avoid higher dividend taxes.
• Consider gifting or revising your estate plan before the estate tax exemption drops.
• Harvest losses in taxable portfolios to offset capital gains.
• Top income tax rate may rise from 35% to 39.6%.
• Consider converting traditional IRAs to Roth IRAs.
• Make $13,000 annual gifts (per person) and consider gifting appreciated stock.
• Charitable donations may become less tax-advantaged – give before year-end.
• Name grandchildren as IRA beneficiaries to maximize tax-deferred growth.
• Take gains this year while the capital gains rate remains at 15%.

Reminder: RMDs must be completed by December 31. Call us if you haven’t taken yours yet.

Sincerely,

Katz Family Financial