Review the CARES act changes for 2020 In March 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law and included relief provisions focused on IRAs and qualified retirement plans. These changes impact the processing and tax reporting of certain transactions in these accounts.

Consider making a 2020 IRA contribution, and create or refresh your retirement plan Maximizing your allowable annual contribution may help keep you on track for retirement and possibly provide tax advantages.  Thursday, April 15, 2021, is the deadline to contribute for the 2020 tax year. It’s important to revisit your retirement plan every year to review your goals and objectives, understand how much you’ll need to accumulate, see where you currently stand and make any adjustments to help to stay on track. If you don’t have a retirement plan, now may be a good time to create one. 

Designate your beneficiaries Life events may affect your beneficiary designations. Review and update your beneficiaries to confirm that they’re consistent with your intentions.

Consider making a charitable contribution Donations of qualified appreciated stock may maximize the amount you give to your favorite causes.

Organize your tax documents. Many investment firms and banks provide access to your account and you can download and print tax documents such as Forms 1099-INT, 1099-DIV, 1099-B, 1099-R, and 5498.

Review your gains, losses, and expenses – and consider the potential tax consequences of income and distributions from your non-retirement account investments. Reviewing your 2020 non-retirement account transactions before year-end may help you identify opportunities to reduce your 2020 taxes. Also, certain distributions from these investments in non-retirement accounts may be taxed as ordinary income. At the same time, a portion of ordinary income distributions from real estate investment trusts (REITs) and income allocations from publicly traded partnerships may qualify for a tax deduction.

Review and rebalance your portfolio Rebalancing your portfolio regularly may assist you with staying aligned with your investment goals and objectives. If your circumstances have changed or you’ve experienced a life event this year, it’s always a good idea to review your savings goals and make sure your investments are still on track.