Obermeyer Wood’s Guide to Getting Organized in the New Year

Happy 2024 from all of us at Obermeyer Wood! 

 A new year offers a great chance to get your finances organized. Below you'll find our top tips to help you get a solid plan in place for 2024. If you'd like to dig deeper, please reach out to your advisor to take advantage of the financial strategy services outlined in Obermeyer Wood's most recent newsletter.  

1. Review 2024 tax updates. We’ve put together a quick tax guide to share the latest tax rates, deductions, estate taxes, gift taxes, capital gains rate, 401K limits, SIMPLE plan limits, IRA limits, and Health Spending Account limits. You can see all the relevant information on one page by viewing our 2024 Quick Tax Guide. 

2. Begin to organize your tax documents. Remember that we will send your Obermeyer Wood tax documents directly to your CPA. For other tax documentation, we recommend starting a checklist from last year’s return to have everything ready for this year. Please reach out if you’d like us to help you with this checklist.

3. Don’t forget to make any final Roth or Traditional IRA contributions by your tax deadline on April 15, 2024. The IRA contribution limits for 2024 are $7,000 for those under age 50 and $8,000 for those age 50 or older. There are many rules to the contributions, including income –phase-outs and other eligibility requirements. We invite you to discuss your specific situation with our team and your tax professional.

4. Confirm your IRA Required Minimum Distribution (RMD) and withdrawal strategy. We’re here to help you plan for RMDs and avoid major penalties. Together, we will work on a plan that’s simple and reduces your tax burden wherever possible. If you’re turning 73 this year and taking your first distribution, our team with work with you to develop the best strategy for your unique situation. 

5. Plan out and prepare for any major financial changes. If you have been considering any major purchases, sales, or gifts in 2024, now is the time to prepare. In conjunction with your tax professional, we will model scenarios and help you understand the financial trade-offs and tax implications of financial decisions you’re considering.

6. Set your 401(k) strategy. As you set your 2024 financial plan and budget, confirm whether you are adding to your 401(k). Reach out to your advisor if you’d like any help checking whether the investments are favorable.
    
7. Discuss education needs with your family and budget accordingly. Setting a plan in place early in the year can help you prepare for tuition increases and private school enrollment fees that can sneak up on you in the spring.
    
8. Incorporate any expected income inflation into your 2024 financial plan and budget. Inflation doesn’t apply just to your expenses – so be sure to adjust your income accordingly. For example, Social Security payments rose 3% since last year.

9. Set up an organizational system for HSA and FSA receipts. If you, like many of our clients, signed up for a Flexible Spending Account (FSA) or Health Savings Account (HSA), now is the time to set up a system to track receipts.

If at any point you’d like additional help with your 2024 financial plan and budget, reach out to your Obermeyer Wood advisor. We’re here to help!