What to do in 2022

Organize your financial plans so you have more time for the things you truly enjoy.


If you didn’t have time to re-visit your financial goals before the end of last year, it’s not too late! Below are some reminders that you may want to think about as you plan for the upcoming year.

RMD Requirements: If you are turning 72 this year, it’s time to start thinking about how you would like to satisfy your RMD. We can set these up on an annual, quarterly or monthly distribution schedule.

Plan your annual gifting: Sending Qualified Charitable Distributions (QCDs) from your IRA can be counted toward satisfying your RMD and leaves cash available in your checking account. Let us know if you would like to make a charitable donation and we will prepare the appropriate paperwork to do so.

Review your Beneficiaries: As we know all too well from the past 2 years, life can be unpredictable. Now is a great time to make sure you have the correct beneficiaries listed on all of your retirement, TOD accounts and insurance policies.

Maximize your contributions: Think you missed the cutoff for IRA contributions? You can make contributions to these accounts for 2021 all the way up until the April tax deadline.

Consider a Roth conversion: Many times, especially after retirement but before age 72 when Required Minimum Distributions (RMD) start, a Roth conversion can help with tax planning. During this time period when income is lower, converting money from a traditional IRA to a Roth IRA can make sense to pay lower taxes than when the money would normally be taken out with RMDs. This method essentially pre-pays some of the taxes that would be paid in later years when the income would be taken out. Talk to your Portfolio Manager and CPA to see if this strategy might be useful.

Gather your tax documents: Please be on the look out for your tax documents starting in mid-February. It is unlikely you would receive them before that, but feel free to give us a call if you want to make sure.

Reporting Qualified Charitable Distributions (QCDs): There is often confusion on how QCDs are reported. The custodians must report QCDs on the Form 1099-R as a “Normal Distribution” (Code 7), which will also be reflected in the Gross Distribution amount. It is always best to consult your tax advisor on how to correctly report QCD’s on your Form 1040.

Connect with your CPA: Once your tax documents arrive, neatly organize them to send along to your CPA. Please feel free to connect us with your CPA if they have any questions that we can help with.
As always, if you have any questions regarding your portfolios, or would like to set up a time to meet with your Portfolio Manager, please don’t hesitate to reach out. We would love to hear from you!