Skip to main content

  •  Tel: (217) 525-1111
  •  Fax: (217) 525-1120  SECURE CLIENT PORTAL

  • Home
  • About Us 
    • Our Firm
    • Our Team
  • Client Services 
    • Audit & Assurance Services
    • Tax Services
    • Accounting Services
    • Consulting Services
    • Charitable & Not-For-Profit
    • Wealth Management
  • Resources 
    • Useful Websites
    • Financial Calculators
  • Careers
  • Contact

Our Mission

your success is our only mission

Helping You

manage the changing face of life

Proactive Planning

for a successful future

  Previous   Next

    You are here

  1. Home
  2. Blogs
  3. Year-end tax and financial to-do list for individuals

Year-end tax and financial to-do list for individuals

Submitted by Eck, Schafer & Punke, LLP on December 14th, 2018

With the dawn of 2019 on the near horizon, here’s a quick list of tax and financial to-dos you should address before 2018 ends:

Check your FSA balance. If you have a Flexible Spending Account (FSA) for health care expenses, you need to incur qualifying expenses by December 31 to use up these funds or you’ll potentially lose them. (Some plans allow you to carry over up to $500 to the following year or give you a 2½-month grace period to incur qualifying expenses.) Use expiring FSA funds to pay for eyeglasses, dental work or eligible drugs or health products.

Max out tax-advantaged savings. Reduce your 2018 income by contributing to traditional IRAs, employer-sponsored retirement plans or Health Savings Accounts to the extent you’re eligible. (Certain vehicles, including traditional and SEP IRAs, allow you to deduct contributions on your 2018 return if they’re made by April 15, 2019.)

Take RMDs. If you’ve reached age 70½, you generally must take required minimum distributions (RMDs) from IRAs or qualified employer-sponsored retirement plans before the end of the year to avoid a 50% penalty. If you turned 70½ this year, you have until April 1, 2019, to take your first RMD. But keep in mind that, if you defer your first distribution, you’ll have to take two next year.

Consider a QCD. If you’re 70½ or older and charitably inclined, a qualified charitable distribution (QCD) allows you to transfer up to $100,000 tax-free directly from your IRA to a qualified charity and to apply the amount toward your RMD. This is a big advantage if you wouldn’t otherwise qualify for a charitable deduction (because you don’t itemize, for example).

Use it or lose it. Make the most of annual limits that don’t carry over from year to year, even if doing so won’t provide an income tax deduction. For example, if gift and estate taxes are a concern, make annual exclusion gifts up to $15,000 per recipient. If you have a Coverdell Education Savings Account, contribute the maximum amount you’re allowed.

Contribute to a Sec. 529 plan. Sec. 529 prepaid tuition or college savings plans aren’t subject to federal annual contribution limits and don’t provide a federal income tax deduction. But contributions may entitle you to a state income tax deduction (depending on your state and plan).

Review withholding. The IRS cautions that people with more complex tax situations face the possibility of having their income taxes underwithheld due to changes under the Tax Cuts and Jobs Act. Use its withholding calculator (available at irs.gov) to review your situation. If it looks like you could face underpayment penalties, increase withholdings from your or your spouse’s wages for the remainder of the year. (Withholdings, unlike estimated tax payments, are treated as if they were paid evenly over the year.)

For assistance with these and other year-end planning ideas, please contact us.

Thomson Reuters © 2018

Contact Us

Tell a Friend

227 South 7th Street, Springfield, Illinois 62701 United States

227 South 7th Street
Springfield, Illinois
62701 United States

  •  Tel: (217) 525-1111
  •  Fax: (217) 525-1120
  •  hkern@espwms.com

Securities offered through Avantax Investment ServicesSM, Member FINRA, SIPC 

Investment advisory services offered through Avantax Advisory ServicesSM​.

Insurance Services offered through an Avantax affiliated insurance agency.

Avantax affiliated advisors may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state.

The Avantax family of companies exclusively provide investment products and services through its representatives.  Although Avantax Wealth ManagementSM does not provide tax or legal advice, or supervise tax, accounting or legal services, Avantax representatives may offer these services through their independent outside business. 

This information is not intended as specific tax or legal advice.  Please consult our firm and your legal professional for specific information regarding your individual situation.

Content, links, and some material within this website may have been created by a third-party for use by an Avantax affiliated representative.  This content is for educational and informational purposes only and does not represent the views and opinions of Avantax Wealth MangaementSM or its subsidiaries.  Avantax Wealth ManagementSM is not responsible for and does not control, adopt, or endorse any content contained on any third-party website.

© 2025 Eck, Schafer & Punke, LLP. All rights reserved.

Website Design For Financial Services Professionals