Sapient Capital: Year-End Checklist

BY The Sapient Capital Team / Nov 3 2023 / Article

Some items to be aware of.

As we approach year-end, we wanted to provide you with some reminders to help you navigate your financial planning, optimize your tax strategies, and make informed decisions. Here are a couple of items that you might want to wrap up before you get into the holiday season:

  • Checks: As a reminder, Sapient Capital is not able to accept or issue checks.  These must be sent directly to Pershing or deposited using the Pershing mobile app.  This aligns with our commitment to enhancing our core wealth management services and ensuring the highest level of security for your assets. Please reach out if you need assistance, and allow extra time for processing.

  • Required Minimum Distributions (RMDs): As you may be aware, RMDs apply to tax-advantaged retirement accounts, such as IRAs, 401(k)s, and 403(b)s, for individuals who have reached the age of 72. For those who have not yet taken their RMDs, it’s crucial to do so by December 31st to avoid penalties. If you have inherited an IRA, different rules apply, and we recommend consulting with your Sapient advisor to ensure compliance.

  • Charitable Donations: Year-end presents a significant opportunity for philanthropic giving. Donating appreciated assets can provide tax benefits while supporting the causes you care about.  There may be opportunities to donate some of your RMD, as well.   Our team can assist you in strategizing and executing these donations efficiently to maximize their impact on both your tax liability and charitable objectives. We are also happy to coordinate with your tax team to ensure you are being as impactful as possible.

  • Annual Gifting: For those interested in annual gifting to family members or friends, the annual gift tax exclusion for 2023 is $17,000 per recipient. You can also make larger gifts by utilizing your lifetime gift tax exemption, which is $12.92 million per individual in 2023. Some expenses such as healthcare and education may be exempt from these rules when paid directly to the provider.

  • Tax Loss Harvesting: Tax loss harvesting involves strategically selling investments that have incurred losses to offset capital gains in your portfolio. This can help reduce your overall tax liability. Your advisor will work with you to determine the most tax-efficient approach while maintaining your investment goals.

  • 529 Plans: Contributions must be posted in the account no later than December 31, 2023 for the 2023 tax year.

  • Life Events Ahead: Do you have any big plans in 2024?  We would love to hear about them and assist you in being as intentional with your wealth as possible to achieve them.

We understand that these topics can feel complex, and individual circumstances vary. Our team is here to provide personalized advice and guidance to optimize your financial situation. Please don’t hesitate to contact your advisor for a detailed discussion and tailored recommendations.  As we approach the year-end, we look forward to assisting you in making informed decisions that align with your financial goals and preferences.

Warm regards,

– Your Sapient Capital Team

The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor’s particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor.
Sapient Capital and its advisors do not provide legal, accounting, or tax advice. Consult your attorney or tax professional. Representatives have general knowledge of the Social Security tenets. For complete details on your situation, contact the Social Security Administration.