2022 Year-End Personal Finance Checklist - A fresh start to the new year!

The New Year 2023 is close at hand. It has been an interesting year to say the least and we want to make sure you know that we are here to help when you need us. To help best prepare you for a positive new year we compiled a checklist of the top 10 year-end personal finance to-dos. Checking off a few of these points will leave you more organized and better financially prepared for the year ahead. Have a look and act where you can, when you can, and then relax and enjoy the holiday season.

  1. Fund tax-advantaged retirement savings accounts.

    • Roth IRA - The 2022 contribution limit for a Roth IRA is the lesser of $6,000 ($7,000 if you're age 50 or older) or your earned income for the year. The deadline to contribute is April 17th, 2023, even if you file an extension. Roth IRAs are not tax deductible, but grow tax free, are not subject to required minimum distributions (RMDs) and can be withdrawn tax-free beginning the year you turn 59 ½.

    • Traditional IRA - Traditional IRAs have the same annual contribution limit and deadline as Roth IRAs. Unlike Roths, contributions to Traditional IRAs may be tax deductible depending on whether you are covered by a retirement plan at work and below certain adjustable gross income (AGI) thresholds. Traditional IRAs grow tax-free but are subject to RMDs at a certain age and distributions are taxed as income.

    • 401(k), 403(b) plans and SIMPLE IRAs – If eligible for deductions in the 2022 tax year, contributions must be made by December 31st. Each plan type has specific contribution limit rules. Consult your Plan Administrator to learn more about your retirement plan. If your employer offers a matching contribution, it is usually a good idea to contribute at least that amount if you are able.

    • Solo 401(k)s - Must be established by December 31st to make contributions to the plan. The Solo 401(k) contribution deadline for employees is December 31st, 2022. Employer Solo 401(k) contributions are accepted until your tax-filing deadline for the tax year, including extensions.

    • SEP Plans - Must be established by the tax-filing deadline of the business (April 15th, plus extensions) and contributions received by the same deadline.

    Remember, the earlier you fund, the earlier your savings start working for you.

  2. Consider tax-loss harvesting. Realized capital gains for the year can possibly be offset with losses. As a result of challenging market conditions throughout 2022, the opportunity to realize losses is not one to pass up. Currently, the IRS limits $3,000 in losses to be deducted on your tax return. Losses beyond that can be carried forward to future years. Call your Advisor to discuss.

  3. Required Minimum Distributions. The IRS requires owners of most retirement account types to take annual RMDs (e.g. Traditional IRAs, SEP IRAs, SIMPLE IRAs, Traditional 401(k)s, etc.), if you are age 72 or older (but potentially before that if you have an inherited IRA, for example). The RMD amount is calculated by a formula developed by the IRS and is generally taxable as income. The rules for RMDs on inherited IRAs are different and more complex. If unsure regarding the applicability, amount, timing, etc. of RMDs, we recommend consulting your Financial Advisor.

  4. Consider a Roth Conversion. Converting a Traditional IRA or a legacy 401(k) to a Roth IRA may be a smart move. You will have to pay taxes on the converted amount now (which can be handled through the IRA account), but the amount converted will then grow tax free and never be taxed again.

  5. Consult a tax professional. The U.S. tax code is complex and constantly changing. Booking a tax planning appointment with a tax professional before year-end and prior to key tax deadlines may save you greatly come tax time. Talk to your tax professional about deductions especially as they relate to the documentation of automobile mileage expenses or meals, travel and gift expenses. Home office expenses may be factored into deductions/contributions as well, however, all must be reviewed by a tax professional.

  6. Pay it forward, consider a charitable contribution. Making an active investment in kindness and goodwill is always a win. Talk to your tax professional to understand how charitable donations might have been impacted this year. Ask about state-specific tax credits available for individual taxpayers. Open a donor- advised fund to provide a tax-smart and simple giving solution. They can be a valuable wealth-planning tool to allow for more strategic giving to the charity of your choice, and to help reduce your taxes at the same time. There are many great options that make giving better all around!

  7. Health check your budget. Assess the year. It's not what you make, it's what you keep that builds wealth.

    • Micromanage your service providers: Most service providers do not expect customers to notice slow and steady rate increases. Call to confirm you are getting the best rates possible.

    • Review your subscriptions: Most of us amass more digital subscriptions than we truly want or need. Take a moment to look through and unsubscribe from those that do not add real value to your life. While you're at it, review those of your children. Undoubtedly, you may be paying for more subscriptions than you need, and they add up!

  8. Health check yourself. Nothing hits a budget like unexpected or preventable medical expenses. Make appointments to check in. Health is wealth!

  9. Check your credit score. It is always good to know where you stand. Equifax, Experian, and TransUnion all offer free one-time annual credit score checks. The free service is available on AnnualCreditReport.com.

  10. Put your extra money to work. If you have extra funds at year-end, put them to work by adding to your investment portfolio. As the old investment adage goes – The best time to invest was yesterday, the next best time is now.

For help or questions about any of these items please contact your Advisor.
This check list will remain featured on www.wtwealthmanagement.com for your review.

Our team at WT Wealth Management is here to help you put your best foot forward in the new year!


There are no warranties implied.
Any opinions expressed on this website are the opinions of WT Wealth Management and its associates only. Material listed on this website is neither an offer to buy or sell securities nor should it be interpreted as personal financial advice. You should always seek out the advice of a qualified investment professional before deciding to invest. Investing in stocks, bonds, mutual funds and ETF’s carry certain specific risks and part or all of your account value can be lost.

At WT Wealth Management we strongly suggest having a personal financial plan in place before making any investment decisions including understanding your personal risk tolerance and having clearly outlined investment objectives.

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WT Wealth Management is an SEC registered investment adviser, with in excess of $100 million in assets under management (AUM) with offices in Flagstaff, Scottsdale, Sedona and Tucson, AZ along with Jackson Hole, WY and Las Vegas, NV. WT Wealth Management is a manager of Separately Managed Accounts (SMAs). With SMAs, performance can vary widely from investor to investor as each portfolio is individually constructed and managed. Asset allocation weightings are determined based on a wide array of economic and market conditions the day the funds are invested. In an SMA, each investor may own individual Exchange Traded Funds (ETFs), individual equities or mutual funds. As the manager we have the freedom and flexibility to tailor the portfolio to address an individual investor's personal risk tolerance and investment objectives – thus making the account “separate” and distinct from all others we manage. An investment with WT Wealth Management is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Any opinions expressed are the opinions of WT Wealth Management and its associates only. Information offered is neither an offer to buy or sell securities nor should it be interpreted as personal financial advice. Always seek out the advice of a qualified investment professional before deciding to invest. Investing in stocks, bonds, mutual funds and ETFs carries certain specific risks and part or all of an account's value can be lost. In addition to the normal risks associated with investing, narrowly focused investments, investments in smaller companies, sector and/or thematic ETFs and investments in single countries typically exhibit higher volatility. International, Emerging Market and Frontier Market ETFs, mutual funds and individual securities may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles or from economic or political instability that other nations experience. Individual bonds, bond mutual funds and bond ETFs will typically decrease in value as interest rates rise. A portion of a municipal bond fund's income may be subject to federal or state income taxes or the alternative minimum tax. Capital gains (short and long-term), if any, are subject to capital gains tax. Diversification and asset allocation may not protect against market risk or investment losses. At WT Wealth Management, we strongly suggest having a personal financial plan in place before making any investment decisions including understanding personal risk tolerance, having clearly outlined investment objectives and a clearly defined investment time horizon. WT Wealth Management may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Individualized responses to persons that involve either the effecting of transactions in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption. WT Wealth Management's website is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of WT Wealth Management's website should not be construed by any consumer and/or prospective client as WT Wealth Management's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the internet. Any subsequent, direct communication by WT Wealth Management with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of WT Wealth Management's current written disclosure statement discussing WT Wealth Management's registrations, business operations, services, and fees is available at the SEC's investment adviser public information website (www. adviserinfo.sec.gov) or from WT Wealth Management directly. WT Wealth Management does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to WT Wealth Management's web site or incorporated therein, and takes no responsibility therefor. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

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