News and Commentary

7 Year-End Strategies for Retirement Savers By Kathleen Marteney, CRPC®

Thanksgiving is in the rearview mirror and another year is quickly coming to an end, leaving investors with a limited amount of time to maximize their retirement savings in the most tax efficient manner. Following are some steps to consider taking before Dec. 31.

Max out your contribution to a workplace 401(k) retirement plan. For 2022, the maximum amount you may defer from your salary is $20,500, or $27,000 if you are age 50 or older.

Understand all your retirement savings options. If you do not have access to an employer-sponsored retirement-savings plan, consider setting up a traditional IRA or a Roth IRA before the end of the year. You have until April 15, 2023, to contribute up to $6,000 to your plan for 2022, or $7,000 if you are age 50 or older.

Remember required minimum distributions (RMDs) from retirement plans. If you are age 72 years or older and you no longer work, you have until Dec. 31, 2022, to take a required minimum distribution (RMD) from your tax-deferred retirement accounts, including 401(k)s, traditional IRAs, SEP IRAs and Simple IRAs. Failure to take an RMD will result in a penalty equal to 50 percent of the undistributed amount.

If you turned 72 in 2022, you may delay your first RMD until April 1, 2023. At that point, however, you will need to take two RMDs for the year, both of which will be treated as taxable income to you.

Understand and abide by the rules for inherited retirement savings accounts. If you are the beneficiary of a tax-deferred retirement account or Roth IRA owned by a person who passed away in 2022, you may be required to take the decedent’s RMD by the last day of the year or risk a penalty. In addition, certain non-spouse beneficiaries of inherited IRAs are now required to deplete those accounts within 10 years following the original owner’s death resulting in tax liabilities on withdrawn amounts.

Be charitable. You may satisfy your annual RMD without incurring income tax liabilities when transfer that amount directly to a charitable organization via a qualified charitable distribution (QCD) before December 31, 2022. The maximum annual amount of the QCD is $100,000, or $200,000 for a married couple filing jointly).

Keep track of employer benefits. If you changed jobs during this year, make sure to account for any and all retirement plans and health savings accounts that you may have had with your previous employer. You may roll over those savings plans directly to an account with your new employer or into a separate IRA to avoid losing track of them in the future and having to pay taxes on early distributions. Under certain circumstances, it may make sense for you to leave your savings in the retirement plan sponsored by your previous employer.

Meet with a financial advisor. Before the end of the year, make a point to meet with your financial advisors to ensure you are making use of all the retirement savings options available to you based on your income and filing status, among other factors. A qualified advisor can help you assess your current financial circumstances, address any holes in your existing estate plan and help you map out a strategy for achieving your personal and business financial goals in the future.

About the Author: Kathleen Marteney, CRPC, is a financial planner with Provenance Wealth Advisors, an Independent Registered Investment Advisor affiliated with Berkowitz Pollack Brant Advisors + CPAs, and a registered representative with Raymond James Financial Services. She can be reached at (800) 737-8804 or via email at

Provenance Wealth Advisors, 515 E. Las Olas Blvd., Ft. Lauderdale, FL 33301 (954) 712-8888.

Kathleen Montgomery is a registered representative of and offers securities through Raymond James Financial Services, Inc., Member FINRA/SIPC.

Raymond James is not affiliated with and does not endorse the opinions or services of Berkowitz Pollack Brant Advisors + CPAs. PWA is not a registered broker/dealer and is independent of Raymond James Financial Services. Investment Advisory Services offered through Raymond James Financial Services Advisors, Inc., and Provenance Wealth Advisors.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of the advisors of PWA and not necessarily those of Raymond James. The information contained in this report does not claim to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. While we are familiar with the tax provisions of the issues presented herein, as financial advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

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Posted on November 10, 2022