{"id":521335,"date":"2022-12-05T08:05:00","date_gmt":"2022-12-05T05:05:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/retirement-hacks-retirees-remember-these-year-end-tax-deadlines\/"},"modified":"2022-12-05T08:05:00","modified_gmt":"2022-12-05T05:05:00","slug":"retirement-hacks-retirees-remember-these-year-end-tax-deadlines","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/retirement-hacks-retirees-remember-these-year-end-tax-deadlines\/","title":{"rendered":"#Retirement Hacks: Retirees: remember these year-end tax deadlines"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3430a33e4ee\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3430a33e4ee\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/retirement-hacks-retirees-remember-these-year-end-tax-deadlines\/#%E2%80%9CRetirement_Hacks_Retirees_remember_these_year-end_tax_deadlines%E2%80%9D\" >&#8220;Retirement Hacks: Retirees: remember these year-end tax deadlines&#8221;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/retirement-hacks-retirees-remember-these-year-end-tax-deadlines\/#Keep_these_tips_in_mind_to_save_money_or_avoid_penalties\" >Keep these tips in mind to save money or avoid penalties.<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/retirement-hacks-retirees-remember-these-year-end-tax-deadlines\/#Alessandra_Malito\" >Alessandra Malito<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CRetirement_Hacks_Retirees_remember_these_year-end_tax_deadlines%E2%80%9D\"><\/span>&#8220;Retirement Hacks: Retirees: remember these year-end tax deadlines&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Keep_these_tips_in_mind_to_save_money_or_avoid_penalties\"><\/span>\n  Keep these tips in mind to save money or avoid penalties.<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div class=\"article__side\">\n<div class=\"container--sticky not-active\">\n<div id=\"cx-next\" data-nosnippet>\n              <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap crawler\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0001449960\" role=\"document\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"\n                inline\" data-layout-mobile=\"\" class=\"\n          media-object\n          type-InsetArticleReader\n              \n              inline\n  article__inset\n          article__inset--type-InsetArticleReader\n              article__inset--inline\n  \"><\/p>\n<div class=\"media-object-article-reader\">\n<div class=\"audioplayer\" data-sbid=\"WP-MKTW-0001449960\" role=\"region\" aria-label=\"Listen to Article\" tabindex=\"-1\" id=\"articlereader\" data-show-title=\"false\" data-theme=\"wsj-article-reader\" data-show-header=\"false\" data-show-subscribe=\"false\" data-ads-enabled=\"true\" data-save-publication=\"false\">\n        <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       It\u2019s the most wonderful time of the year for holiday cheer \u2013 and last-minute tax tips.\u00a0<\/p>\n<p> <strong>Retirement Tip of the Week: As we <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach the new year, look for tax-advantageous strategies to cut your tax bill next year, or at least save you money in the long run.\u00a0<\/strong><\/p>\n<div class=\"paywall\">\n       Tax planning can be arduous, but so is getting everything situated in the weeks leading up to Tax Day. There are also a few important deadlines retirees need to keep in mind to save money or avoid big penalties.\u00a0<\/p>\n<p>One of the most popular strategies is the Roth conversion. Traditional retirement accounts, such as the traditional IRA or 401(k), are invested with pretax money, which means savers are taxed at the time of withdrawal. Roth accounts are contributed with after-tax dollars, so anyone who follows the rules will reap the benefits of tax-free distributions later in life.\u00a0<\/p>\n<p>There\u2019s no right answer for which account is best, but <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> guidelines suggest people in lower tax brackets contribute to a Roth, especially if they expect to be in a higher tax bracket at retirement, and those who are in their peak earning years should go with a traditional, if they expect their income to be lower at the time they take a withdrawal.\u00a0<\/p>\n<p>A Roth conversion allows individuals to move money they may not need right now from a traditional account to a Roth account, so they\u2019ll pay the taxes in the year they make the conversion. This strategy is best for taxpayers who may have seen a reduction in taxable income, as they could be in a lower tax bracket than usual and pay less in taxes on the conversion.\u00a0<\/p>\n<p><strong>See: <\/strong>Is now a good time to do a Roth IRA conversion?<\/p>\n<p>Estimating tax brackets is a great way to save money, advisers said. One item on the \u201cto do\u201d list should be to compare their projected tax bracket with their current and potential future tax brackets, said Vaughn Kellerman, associate wealth adviser at HCM, a firm that provides retirement planning advice.\u00a0<\/p>\n<p>\u201cThis allows for the optimization of the lowest tax bracket available regarding ordinary income sources,\u201d he said. \u201cFor example, if it is determined that the retiree will be in a lower tax bracket this year versus next year, and they know they are planning for an additional large expense next year such as a new car, it would benefit them to take that money out of a retirement account before the end of the year.\u201d\u00a0<\/p>\n<p>Having an idea of what your income and expenses are for the current and future year is also just good general financial planning practice. With that information, retirees can decide if they should take <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Social<\/a> Security early, or if they can afford to delay it, as well as feel more secure in their finances when the economic environment around them could be a bit scary, as it has been for many Americans this year.\u00a0<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>The deadline for required minimum distributions is Dec. 31 every year (except for people taking their very first RMD, who can delay until April 1 of the year following their 72nd birthday). The IRS calculates required minimum distributions using the individual\u2019s age, account balance and a life expectancy chart, and those distributions are mandatory even if the retiree doesn\u2019t need the money.\u00a0<\/p>\n<p>The penalty for ignoring an RMD is 50% of what was supposed to be withdrawn \u2013 for example, someone whose RMD was $1,000 would face a $500 penalty on top of their RMD. Someone who takes a partial distribution would still pay the fine, so in the previous example, if the taxpayer took only $500 of the $1,000 he was supposed to take, he\u2019d face a $250 penalty.\u00a0<\/p>\n<p><strong>Want more actionable tips for your retirement savings journey? Read MarketWatch\u2019s \u2018<\/strong><strong>Retirement Hacks<\/strong><strong>\u2019 column<\/strong><\/p>\n<p>Tax-loss harvesting is another strategy advisers suggest, though it\u2019s used in nonretirement investment accounts (there are restrictions in tax-deferred accounts, according to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.schwab.com\/learn\/story\/how-to-cut-your-tax-bill-with-tax-loss-harvesting\" class=\"icon none\">Charles Schwab<\/a>). With tax-loss harvesting, assets currently suffering a loss are sold and replaced with similar options \u2013 consider working with a financial planner, qualified tax professional or someone at the investment firm housing your money before attempting it.\u00a0\u00a0<\/p>\n<p>Another important tax task at the end of the year: making sure you\u2019ve reasonably estimated capital gains, losses and income, said Dennis Nolte, a financial adviser with Seacoast Investment Services. This is especially true for people who are not withholding taxes from pensions, Social Security and IRA distributions. <\/p>\n<p>\u201cQuarterly estimated taxes for the following year are always a concern for these folks,\u201d he said.\u00a0<\/p>\n<p>And then there\u2019s organizing documents to avoid headaches around tax season. Retirees who itemize should keep a comprehensive collection of critical documents and receipts, such as medical expenses, so that they\u2019re not fishing for those figures and any proof come April.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>    <span>By<\/span><\/p>\n<div class=\"author mobile-scrim hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Alessandra Malito\",\"subhead\":\"The Wall Street Journal\",\"list\":[{\"type\":\"link\",\"icon\":\"bio\",\"url\":\"https:\/\/www.marketwatch.com\/topics\/journalists\/alessandra-malito\",\"text\":\"Biography\"},{\"type\":\"link\",\"icon\":\"twitter\",\"url\":\"https:\/\/twitter.com\/malito_ali\",\"text\":\"@malito_ali\"},{\"type\":\"link\",\"icon\":\"email\",\"url\":\"http:\/\/www.marketwatch.com\/news\/mailto:amalito@marketwatch.com\",\"text\":\"amalito@marketwatch.com\"}]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Alessandra_Malito\"><\/span>Alessandra Malito<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p><ufc-follow-author-widget product=\"marketwatch\" author-id=\"4_MW\" author-name=\"Alessandra Malito\" signin-url=\"https:\/\/accounts.marketwatch.com\/login?target=https%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fretirees-remember-these-year-end-tax-deadlines-11670167552%3Frss%3D1%26siteid%3Drss\" panda-api=\"https:\/\/follow-api.marketwatch.com\"><\/ufc-follow-author-widget><\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B20C06575-04D4-B545-7161-FE805DD5F688%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Retirement Hacks: Retirees: remember these year-end tax deadlines&#8221; Keep these tips in mind to save money or avoid penalties. It\u2019s the most wonderful time of the year for holiday cheer \u2013 and last-minute tax tips.\u00a0 Retirement Tip of the Week: As we approach the new year, look for tax-advantageous strategies to cut your tax bill&#8230;<\/p>\n","protected":false},"author":1,"featured_media":521336,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-657125\/social","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-521335","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/521335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=521335"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/521335\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/521336"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=521335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=521335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=521335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}