As 2022 comes to a close, now is a good time to work with your CPA to review your taxes and implement any tax planning strategies before year-end. Here are some common activities to help get you started:

  • Maximize allowable contributions to retirement accounts. Following the SECURE Act of 2019, there is no age restriction on making Traditional IRA contributions as long as you have earned income. IRA contributions can be made up until the April tax filing deadline of the following year.
  • Complete Required Minimum Distributions (RMD) in your retirement accounts. Prior to the SECURE Act, RMDs began at age 70 ½ but if your 70th birthday fell on or after July 1, 2019, these withdrawals are now required at age 72. For your first RMD only, you have the option to defer the withdrawal to April 1 of the year following your 72nd If you choose to defer, you will have two RMDs to fulfill in the year of your 73rd birthday (prior year and current year). Failure to take an RMD can result in a penalty of 50% the amount not withdrawn. If you have an inherited IRA, check with your CPA that you are following the appropriate distribution rules for your inherited IRA.
  • Qualified Charitable Distributions (QCDs) are distributions paid directly from an IRA to a qualifying nonprofit organization that are not taxed as ordinary income. They can be a tax efficient way to give to a qualifying nonprofit organization of your choice and satisfy a portion of, or your full RMD. It is important to know that the limit for QCDs is $100,000 per year and to ensure the distribution is made directly from your IRA to a qualifying nonprofit organization.  You can make QCDs starting at age 70 ½ (even though you may not have started taking your RMDs).
  • Consider converting all or a portion of your Traditional IRA to a Roth IRA. The amount converted will be considered a taxable withdrawal from the IRA. Roth accounts grow tax-deferred, and withdrawals are tax free as long as you are at least 59 ½ old and it has been at least 5 years since you first contributed to the Roth IRA. Roth conversions in a bear market mean you pay taxes on lower asset values.  Paying the taxes due from a taxable account will keep intact the amount converted and maximize the tax-free growth.
  • For 2022 the annual gift exclusion is $16,000. You can gift up to $16,000 to any individual without paying gift tax or using your lifetime exclusion amount. Your spouse can also gift an additional $16,000 to the same individual for a total gift of $32,000. Additionally, paying tuition or medical expenses for someone is not considered a taxable gift. Tuition and medical expense must be paid directly to the respective institutions.
  • You can deduct charitable contributions of cash or securities made to qualifying nonprofit organization up to certain limitations – generally up to 60% of your adjusted gross income for cash contributions to public charities and up to 30% of your adjusted gross income for cash contributions to private charities. These limits are further reduced to 30% and 20% respectively when you are contributing securities and other property. Any amounts exceeding the limitations can generally be carried over to the following tax year. Be sure to review your planned contribution with your CPA to know what limitations would apply.
  • At Callan Capital we are systematically reviewing client portfolios for opportunities to tax loss harvesting all year round.  Tax loss harvesting is the selling of securities at a market value below their cost basis to generate a loss that can be used to offset a gain. You may wish to consider reviewing all investments for additional opportunities to harvest losses.

The information provided is for informational purposes only and should not be considered investment advice. The information contained herein reflects Callan Capital views as of the date of distribution. Such views are subject to change at any time without notice due to changes in market or economic conditions and may not necessarily come to pass. Callan Capital does not provide tax or legal advice. To the extent that any material herein concerns tax or legal matters, such information is not intended to be solely relied upon nor used for the purpose of making tax and/or legal decisions without first seeking independent advice from a tax and/or legal professional. Any forward-looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. Callan Capital is not responsible for the consequences of any decisions or actions taken as a result of information provided in this presentation and does not warrant or guarantee the accuracy or completeness of this information. No part of this material may be (i) copied, photocopied, or duplicated in any form, by any means, or (ii) redistributed without the prior written consent of Callan Capital. For detailed information about our services and fees, please read our Form ADV Part 2A, and our Form CRS which can be found at or you can call us and request a copy at (866) 912-4888