As the New Year gets fully underway, remembering your spouse’s birthday or when the next big work project is due are not the only items that should be entered on your 2022 calendar.
Missing a financially important date may not cause hurt feelings but it can result in financial pain whether by missing a deadline for a tax filing, health plan open enrollments, or required distributions from retirement savings.
Your One Financial Services advisor is with you throughout the year to assist with each important deadline that can impact your future, as it arises…
Jan.1 to March 31 - Medicare general enrollment. If you missed signing up for Medicare when you turned 65 you can now enroll in Parts A and B. If you’re an Advantage plan member you can also use this period to switch to a new Advantage plan or back to original Medicare. So, if you’ve tried a Medicare Advantage plan and find something you don't like about it, this is a time to make corrections.
April 1 - This deadline pertains only to those who turned 72 in 2021 and didn't take a required minimum distribution last year. Age 72 is when you must begin taking distributions from tax-deferred retirement savings accounts, but first-timers can delay taking an initial RMD until April 1 of the year following their 72nd birthday. After that, the deadline for taking RMDs is every Dec. 31.
Although Roth IRAs have no required minimum distributions, Roth 401(k)s do. You can skip taking an RMD from your current employer's plan if you continue working there and don't own 5% or more of the company.
There are many factors affecting RMD’s. Your One Financial Services advisor can review all your options moving forward.
April 18 – You can thank Washington D.C.’s regional holiday, “Emancipation Day” for three extra days to file your 2021 Federal taxes. Remember, even if you file an extension, the estimated money owed is due.
This date is also the last chance to make a 2021 contribution to your IRA.
And, if you file quarterly, this is the deadline for your first estimated tax payment of 2022.
June 15 - Your second-quarter estimated tax payment is due.
July 1. Are your estimated tax payments on track to avoid underpayment penalties? This midyear point is a good time to assess your 2022 tax bill, and an even better time to schedule a meeting with your One Financial Services advisor to consider tax-advantaged moves for the remainder of the year.
Sept. 15 - Third-quarter estimated taxes are due.
Sept. 30 - By now, you should have received Medicare's annual notice of changes to formularies, benefits, and premiums for either a Medicare Advantage or Part D prescription drug plan. Changes take effect in 2023. Review them carefully.
Oct. 15 – If you filed an extension, today is the deadline for turning in your 2021 tax return.
Also, Medicare open enrollment begins. You have until Dec. 7 to switch between traditional Medicare and Medicare Advantage or choose new Advantage or Part D prescription drug plans, with coverage beginning in 2023.
Nov. 1 - In most states, early retirees can begin shopping today for a 2023 health plan on the Affordable Care Act exchanges. You have until Dec. 15 to select coverage.
Dec. 1 – If you want to make a “qualified charitable distribution” from your IRA, this is a good time to do it to ensure the charity receives the money by the end of the year.
Traditional IRA owners who are at least age 70½ can transfer up to $100,000 directly to charity in 2022. A QCD still counts as an RMD but is excluded from taxable income.
Dec. 15 – To ensure you don’t miss the Dec. 31 deadline, your RMD should be taken by this date. Missing the deadline is an expensive error that comes with a 50% penalty on the missed amount.
Dec. 31. The last chance to trim your 2022 tax bill. Charitable gifts, 401(k) contributions, Roth conversions, and the sale of a losing investment to offset market gains elsewhere must all be completed by today to count for 2022.
No matter the month or the season, the One Financial Services team is always available to help you meet your deadlines and build a confident financial future.
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.