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Since the Thanksgiving holiday fell so late this year, it seemed like we had a shorter holiday season. In the blink of an eye, this year will be over and we will be walking into another year. Since the holiday season falls in line with many of the tax deadlines that need to be met, we think it will be a good decision to check some of the things off your list before the madness truly begins.

As the year comes to a close, there are many tax-related things that you will need to address before your retirement day approaches. If you are older than the age of 70 and you have more than one tax-deferred account, we encourage you to make sure you have made the required distributions to those accounts.

The deadline for required minimum distributions is at the end of the month of December. What happens if the deadline passes without you taking any action? You will have to pay taxes on the required minimum distribution, in addition to being responsible for paying a penalty on the amount that you did not take.

The end of 2019 is the perfect time for you to create a new cash-flow strategy for 2020. Do you have an idea of how much you plan to withdraw from your portfolio next year? Do you know what accounts you will use to make those withdrawals? One of the best ways to reduce the amount of taxes you will owe in a year is to not limit your withdrawals to one account. If you make withdrawals from multiple accounts, you will give yourself a better chance of being placed in a lower tax bracket.

With the year coming to a close, the tax estimates for 2019 should be reasonably accurate. There are many tax-trimming moves you can make before the new year arrives. Fortunately, a tax professional and a financial advisor will be able to help you plan for a new year and ensure you have the best strategy for your current and future income. Contact us today for more information on what moves you can make to lower your 2019 tax bill.