2020 Year End Financial Planning Reminders

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We hope this finds you health and well. Between the Tax Cuts and Jobs Act, SECURE Act, and CARES Act, there has never been more to consider in your planning. As we wrap up 2020, and prepare for 2021 we wanted to provide some year end reminders. Please find a video and associated checklist below. As always, please don’t hesitate to reach out if we can help as we wrap up the year!


Kerry & Bob

 2020 Year End Financial Checklist


Income projections for year 2020 and 2021
Review personal impact from Tax Cuts & Jobs Act
Review realized & unrealized gains and losses
Check loss-carry forwards from last year
Review Sale of Appreciated property such as real estate
Review potential deductions & credits for 2020
Review donations to charity & gifting plans


NEW CARES ACT 2020: As per CARES Act, RMDs were suspended for 2020

NEW CARES ACT 2020: Allows for an exception for families directly affected by COVID-19. Under this exception, you can take up to $100,000 from your IRA to help with expenses. You won’t incur the 10% penalty for distributions taken before age 59.5. The distribution will automatically be spread over the next three years from a tax perspective, allowing you to use the funds for immediate needs while mitigating the tax hit.


Max out 401(k)’s including catch-ups & review Roth vs Traditional contributions                   (2020 max: $19,500; $26,000 if you’re 50 and older:)

Max out IRA contributions including catch-ups & review Roth vs Traditional contributions

(2020 max: $6,000; $7,000 if you’re age 50 or older)

Analyze Roth IRA conversion scenarios
Consider other retirement plan options if self-employed
Review IRMAA levels
Consider Social Security optimization strategies or claiming options


Confirm investment goals and strategies
Review asset allocation & potential re-balancing
Review income and savings needs
Review outstanding loans and mortgages
Review dividend distributions
Review employee stock options
Review asset location


Review property & casualty insurance
Review costs of current insurance policies
Review changes in your life, business or finances that may require insurance adjustments


Review health insurance coverage

Review Health Savings Account contributions for 2020 (if applicable)

(2020 Max: $7,100 families; $1,000 catch-up contribution if 55 or older)

Spend remaining balances from Flexible Spending Accounts (if applicable)
Review Medicare enrollment options (if applicable)


Contribution to education accounts
Review and fund trusts
Make any cash gifts to family members

Age Related Milestones

50: Now you can make catch-up contributions to IRAs and some qualified retirement plans
55: You can take distributions from 401(k) plans without penalty if retired
59 1/2: You can take distributions from IRAs without penalty
62-70: You can apply for Social Security benefits
65: You can apply for Medicare
70 ½: You can begin to make Qualified Charitable Distributions
72: You must begin taking RMDs from IRAs

Securities and advisory services offered through Cetera Advisor Networks LLC. Member FINRA/SIPC, a broker dealer and Registered Investment Advisor. Investment advisory services also offered through CWM, LLC, an SEC Registered Investment Advisor. Cetera Advisor Networks LLC is under separate ownership from any other named entity.

Converting from a traditional IRA to a Roth IRA is a taxable event. For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice.

A Roth IRA offers tax free withdrawals on taxable contributions. To qualify for the tax-free and penalty-free withdrawal or earnings, a Roth IRA must be in place for at least five tax years, and the distribution must take place after age 59 ½ or due to death, disability, or a first time home purchase (up to a $10,000 lifetime maximum). Depending on state law, Roth IRA distributions may be subject to state taxes.

Distributions from traditional IRA’s and employer sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59 ½ may be subject to an additional 10% IRS tax penalty.

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