December: Wrap Up Loose Ends

This month’s Insurance Policy Centres Calendar action item is “Wrap Up Loose Ends”.  Here are some items to keep in mind at the end of the year: 

• Keep an eye on your holiday budget. While using credit cards is a great way to earn cash back or rewards, you’ll need to be sure that you can pay off the balance with your next statement so you can avoid high interest charges. 
• Use your gift cards. Consider gifting any that you won’t be using to your family and friends. Or you can sell them, though you’ll get less than face value, you’ll have something. 
• Individual health care enrollment deadline for the Federal Health Insurance Exchange is usually December 15th (visit healthcare.gov to confirm). States with their own exchanges may have longer open enrollment periods, so check your state website as well. If you experience a major life event (or meet other specific criteria), you may also be able to apply for health insurance during special enrollment periods. 
• Review Your Spending Account Balances. Dependent Care Spending Accounts (DCSA’s) and many Flexible Spending Accounts (FSA’s) have a “use it or lose it” policy. If you will have money left over, here are some applicable expenses for FSA’s: Vision (new glasses or contacts), Chiropractic Care, Acupuncture, Prescription Medications, Mental Health Treatment (Therapy) and more (see this round-up of Health Care FSA Eligible Expenses or visit the IRS site). 
• Charitable donations. Make any year-end donations to support your favorite nonprofits to make a positive difference and to be able to claim your tax deduction. Be sure to check to see if your donation is tax deductible (see: Charitable Contributions You Think You Can Claim but Can’t). The CARES Act created new opportunities for certain charitable gifts and expanded the ability to take a charitable deduction (here’s How the CARES Act changes deducting charitable contributions). 
• Complete any gifts to people or trusts to take advantage of the annual gift tax exclusion. The annual gift tax exclusion limits increase each year. 
• Review your IRA and 401(k) contributions and distributions. If you had to take a first RMD by April 1, you must take your second RMD by December 31. 

Doug Myrick | Insurance Policy Centres LLC | 305.741.3684 | www.dougmyrick.com