Final Reminders for the 2024 Tax Season

As we approach the final month of tax season, it’s essential to keep a few important tax matters in mind to ensure you’re making the most of every opportunity for tax savings and long-term tax optimization.

Here are three key reminders to take consider this month:
1) Prior-Year IRA & Roth IRA Contributions
Don’t forget that you still have time to complete prior-year IRA and Roth IRA contributions for the 2024 tax year before the April 15th deadline. By contributing to a Traditional IRA, you can enjoy tax-deferred growth and potentially reduce your taxable income for the year. A Roth IRA, on the other hand, doesn’t offer income deductions, but allows for tax-free growth and tax-free withdrawals in retirement.
For some, combining the two and completing a back-door Roth IRA contribution, may be a more beneficial consideration. Please Click Here to review the steps in this process but know that we are available to assist with implementation should you meet the qualifications and wish to proceed.

2) Flexible Spending Account (FSA) Final Grace Period
The final grace period for your FSA is fast approaching! Many employers offer a 2.5-month extension (usually through March 15th) for employees to use up any remaining FSA funds from the previous year. This extension is a valuable opportunity to make use of the remaining money you’ve set aside for medical expenses.
To make the most of your FSA, here are a few tips:
• Day-One Balance: Your FSA provider typically makes the full year’s contribution available at the beginning of the year, which can help you tackle larger expenses early on.
• Spousal and Dependent Coverage: FSA dollars can be used for qualified medical expenses for your spouse and dependents as well, which can broaden the scope of your tax-free spending.
• Dental & Vision: FSA funds aren’t just for medical costs; they also cover dental and vision expenses, including glasses, contacts, and routine checkups.
• FSA-Eligible Purchases: Look for the “FSA or HSA Eligible” tag on items online, especially on platforms like Amazon, to make your everyday purchases tax-advantageous.

3) Reminder to Upload Your Completed Tax Return
As tax season wraps up for you, it is only just starting for us! Before filing away your completed 2024 return, please be sure to forward us a copy for review. Know that this document is a blueprint for which we reference throughout the year. This information allows us to provide you with customized guidance best suited for your specific financial situation.

If you have any questions or need assistance with any of the above items, please reach out to your ACM Wealth Advisor! We’re here to help you navigate the complexities of tax season and plan strategically for your financial future.

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