5 points of Financial Data you should check before end of year.

Posted 3 years ago by SavvyMoney
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5 points of financial data to prepare for the new year.

  1. Prepare your tax documents – One third of Americans file their taxes at the last minute. Filing late could cost you additional penalties, interest, or fees. Most common tax forms include:
    1. Wage information
    2. Photo identification
    3. Personal information for all filers
    4. Previous year(s) tax returns
    5. Charitable donations
    6. Childcare or education expenses
    7. Itemized medical expenses
  1. Check your flexible spending account balance – If your flexible spending account has a balance that you can’t carry over into next year - spend it so you don’t lose it.
  2. Take note of your retirement accounts – See if you have the bandwidth to add any additional contributions.  Keep the maximum contributions in mind.
    1. If you’re younger than 50 the contribution limit is $19,500.
    2. If you are 50 or older, you qualify for ‘catch-up’ contributions – meaning each year you can put into your 401K up to $26,000.
  3. Analyze your bank statements + Credit Reports – Use your bank statement information to create a budget for the first quarter of the year. Pull your credit reports(s) through the end of the next April and scan them for errors and inaccuracies.
  4. Review Goals and Progress – Ensure your emergency fund is in a good place, and that your savings plan is in line with your goals. Update your strategy – or expectations – as necessary.