As we prepare to say goodbye to one year and hello to another, it's time to make some important end of year financial moves. Here are some ideas from David Sant from Cyprus Credit Union to help get you started on the right track next year.
Evaluate Goals. If you made financial goals at the start of this year, take a good look at them to see how you did. It's okay if you didn't reach all of your goals, you can rework the ones you fell short on and add to the ones you completed.
Charitable Donations. Did you make charitable donations throughout the year? Start collecting this information before tax time, including gathering receipts. Remember, there are some exceptions when it comes to charitable giving so be sure to ask your tax preparer or CPA for details.
Contribute to Retirement. If you haven't made contributions for 2018 to a Traditional or Roth IRA plan, do it now. If you are over 50, you can contribute more in a Traditional/ Roth Employer sponsored 401K or to a Traditional and Roth IRA plan. You can contribute approximately $18,500 more in a 401K for 2018. Check with your CPA or accountant for the exact amounts allowed for 2018.
Check Your Flexible Spending Account Balance. Sometimes your FSA accounts do now allow a balance carryover into the new year. If you have funds to use, purchase contact lenses, get new eye glasses or stock up your medicine cabinet. If you need dental work done, get it done before the end of the year. Be sure to check what eligible health care expenses are covered.
Contribute to a 529 Account. If you have children, think about opening a 529 college savings plan to help pay for children's or grandchildren's future educations. These plans can be used on qualified higher education expenses and contributions need to be made by the end of the year. The cost of college seems to rise as fast as children grow so you should start saving early.
Check Your Emergency Fund. It is a good idea to have at least three to six months' worth of expenses saved up for any emergencies. This amount should be adjusted for the size of your family and current savings. It should be kept in a very liquid and safe environment.
For more information please visit www.cypruscu.com.