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:
- Open a retirement account (make contributions in 2021 that apply to 2020)
- Adjust your tax withholdings
- Check your 529 Plan (do your contributions qualify for a state income tax deduction or credit?)
- Make charitable contributions
- Why this could be a good year to make a Roth conversion
- 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!