Mid-Year Tune Up

The year is half over which means it is an excellent time to do a little financial clean up and catch up!

401(k), 457 or 403(b) Contributions: Make sure you are on track to fully fund your employer sponsored retirement plan for 2019, especially if you have a company match. Who doesn’t like free money?

Take a little time to look at the options that are available and confirm they still work for your investment strategy.

If you want to put in even more than $19,000, check with your plan sponsor to see if you have a non-deductible, non-Roth contribution available to you. If so, this is a great addition and may be able to be converted to a Roth 401(k) with an in-plan conversion. As a reminder, these plans can only be funded through payroll contributions.

Retirement Plan Investments: Take a little time to look at the options that are available and confirm they still work for your investment strategy. No strategy? Use your retirement plan provider resources to help you to create an investment strategy.

Flexible Spending Account: As this account has a limit to the amount of funds you can carry forward to 2020, ensure you are on track to use all the funds you would have saved by the end of the year.

Open Enrollment: Find out when your open enrollment period begins. This is the time to compare health plans and choose the most appropriate one for you and your family’s needs. In addition, look at the flexible spending plan (FSA) and decide how much to contribute. A Health Savings Account (HSA) may also be available depending on your choice of health plan.

Non- Retirement Investment Accounts: You have probably been looking at your investment accounts recently and consider selling off some holdings that have lost money – not just this year but since you bought them. This loss can be used to offset any gains in investment accounts, drop your taxable income by $3,000 and even carry forward to 2020; if the loss is large enough.

Holiday Expenses: Get a jump start on saving for the holiday season by putting away a little money every month. Include in your budget not just gifts and decorations but anticipated entertaining costs, costs of traveling to see relatives or having them come to you and any other expenses you may incur. This way, you are more prepared for when December rolls around and you will not have the dreaded debt hangover in 2020.