DATES TO REMEMBER

May 17: Tax day – the deadline to file your return and pay taxes or request an extension. Also, first quarter estimated tax payments are due, if required.

May 17: Last day to contribute to traditional and Roth IRAs or health savings accounts for 2020.

THINGS TO DO

  • Read up on RMDs: If over 72, take required minimum distributions (RMDs) from your IRAs and qualified plans. You must begin RMDs by April 1 the year after you turn 72. Subsequent distributions must be taken by Dec. 31 each year. That means if you reached 72 during 2020, and you delayed your 2020 initial RMD until April 1, 2021, you still have to take your 2021 RMD before Dec. 31, 2021. For more information, go to irs.gov/rmd.
  • Go house hunting: It’s homebuying season. If you’re considering buying or refinancing a home, keep an eye on mortgage rates and plan to review the terms with your advisor as such a major purchase will have an effect on your financial plan.
  • Mull over an extension: If applicable – particularly if you hold securities subject to income reallocation – ask your tax advisor if filing an extension with the IRS would be beneficial.
  • Restore balance to your portfolio: Similar to your retirement accounts, consider a seasonal review of your portfolio to ensure your allocation is optimal for your objectives.
  • Conduct a cash-flow checkup: Make sure all expenses are considered, and that you’re still allocating enough to your savings, retirement and “rainy day” accounts.
  • Tidy up: Create a spring cleaning ritual and let go of the clutter consuming space in your home. Giving items away offers its own benefits – just remember to get a qualified appraisal for more valuable donations.
  • Inspect your credit report: Making a habit of checking your credit report at least once a year can help you detect and dispute errors.
Withdrawals from tax-deferred accounts may be subject to income taxes, and prior to age 59 1/2 a 10% federal penalty tax may apply. Roth IRA owners must be 59 1/2 or older and have held the IRA for five years before tax-free withdrawals are permitted. The process of rebalancing may result in tax consequences. Asset allocation does not guarantee a profit nor protect against loss. Investment products are: not deposits, not FDIC/NCUA insured, not insured by any government agency, not bank guaranteed, subject to risk and may lose value. © 2021 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. © 2021 Raymond James Financial Services, Inc., member FINRA/SIPC. Raymond James financial advisors do not render legal or tax advice. Please consult a qualified professional regarding legal or tax advice.