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 end-of-year tax planning and what you can do to prepare before you celebrate the end of 2020.
Here’s what we cover:
- Open a retirement account – you can make contributions that can be retroactively applied to 2020
- Adjust your tax withholdings
- Check your 529 Plan – see if your contributions qualify for a state income tax deduction or credit
- Make charitable contributions
- This could be a good year to make a Roth conversion
- Spend down the balance in your FSA – you can only rollover up to $500