We’re nearing the end of 2020, but you’ve still got time to make some year-end financial moves.
For starters, add to your IRA. You actually have until April 15 to contribute to your IRA for the 2020 tax year, but the sooner you put the money in, the quicker it can work for you.
Also, if your employer allows it, put in a little extra to your 401(k) or similar retirement plan.
If you’re 72 or older, you don’t have to take withdrawals from your IRA or 401(k) that would normally be required by year-end, due to the economic stimulus legislation. If you don’t need the money, you can let your retirement accounts continue growing on a tax-deferred basis.
Here’s another suggestion: Review your investment mix to see if it’s still appropriate for your goals and risk tolerance.
Finally, see your tax advisor. You might be able to make some investment-related moves that can improve your tax situation.
Taking these steps can help you close out 2020 on a positive note – and start 2021 on the right foot.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisors, Brent D. Hoskinson and Linda Drake.