PSA Thursday: Year-End Tax Moves to Finish 2020

Welcome back to PSA Thursday, a weekly-ish segment in which we talk about how to handle money, work, and life in the year that is 2020.

Today, we focus on the importance of year-end tax planning. Make these moves before ringing in 2021!

Here are the tips we cover:

1. Open a retirement account (make contributions in 2021 that apply to 2020)
2. Adjust your tax withholdings
3. Check your 529 Plan (do your contributions qualify for a state income tax deduction or credit?)
4. Make charitable contributions
5. Why this could be a good year to make a Roth conversion
6. Spend down the balance in your FSA (you can only roll over up to $500)

Details about each of these tips are in the episode.

Enjoy, and Happy Holidays!

Resources Mentioned:

• PSA on Donor Advised Funds