As we near the end of the year, we want to make sure you’re aware of potential year-end strategies to consider:
Remember the tax man
Tax-loss harvesting is a strategy to potentially manage taxes by selling an investment at a loss and using that loss to offset capital gains. If there are no capital gains to offset in the year the loss was “harvested,” it can be carried over to offset future gains or future income—there currently is no expiration date, but Congress can change tax laws at any point. Given this year’s financial market performance, it may make sense for you to consider this strategy. Note: Consult your tax professional before considering a strategy that would involve selling investments for tax purposes.
Required Minimum Distributions
For 2024 and later years, RMDs are no longer required from designated Roth accounts. You must still take RMDs from designated Roth accounts for 2023, including those with a required beginning date of April 1, 2024.
Beginning in 2023, the SECURE 2.0 Act raised the age that you must begin taking RMDs to age 73. If you reached age 72 in 2023, the required beginning date for your first RMD is April 1, 2025, for 2024. If you reached age 73 in 2023, you were 72 in 2022 and subject to the age 72 RMD rule in effect for 2022.
Please let us know if you would like more information on RMDs.
Review your plan
It’s always important for us to review your short-and long-term goals so we can help determine if your overall asset allocation continues to be appropriate. Remember, asset allocation and diversification are approaches to help manage investment risk. They do not guarantee against investment loss.
We monitor this for all our clients and are here to answer any questions you may have. Your Azzad advisor will have more personalized suggestions for your portfolios.
Advisory services offered through Azzad Asset Management, an investment adviser registered with the U.S. Securities and Exchange Commission. Registration as an investment adviser does not imply a certain level of skill or training. Azzad Asset Management does not provide tax or legal advice, and we encourage you to consult with tax or legal professional advisors before implementing any legal or financial planning strategies.
