Last Call

November 28, 2018 - Published by IAG Wealth Partners

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December 14 marks the end of 2018.

It is amazing how the end of the year creeps up on you when you subtract 17 days from the calendar.

December 14 is the last day that LPL Financial will guarantee year-end processing for your last minute, should-have-done-it-sooner 2018 financial transactions. After December 14 every requested transaction will be completed on a best efforts basis with no guarantee that it will be completed by December 31.

Here is our top 5 list of most commonly requested year-end transactions:

  1. Donating an appreciated asset to a charity. If you will be itemizing deductions in 2018, donating an appreciated investment to charity allows you to avoid paying capital gains taxes and claim the deduction.
  2. Fulfilling your Required Minimum Distribution (RMD). If you are over age 70.5 or own an inherited retirement account, you are likely subject to RMDs. Failing to take your RMD could result in a 50% penalty.
  3. Using a charitable rollover. If you are over age 70.5, you are allowed to donate up to $100,000 per year directly from your IRA to a charity. This strategy is more valuable if you are not itemizing your deductions.
  4. Roth conversion. If you think your tax rates may be higher tomorrow than they are today, your tax professional may recommend converting a portion of your traditional IRA to a Roth IRA for future tax-free growth. This results in paying some taxes in 2018 that you could have deferred to the future.
  5. Gifting. Each taxpayer is permitted to gift up to $15,000 to another person in 2018 without filing a gift tax return. If the gift giver is in a higher tax bracket than the gift receiver it may make sense to gift an appreciated investment.

As always, please be sure to check with your tax professional to see if you would benefit from any of these strategies. Everyone’s tax situation is different.

This is the last call for 2018. If it needs to get done by December 31, get it started now.


Quote of the week: Napoleon Hill: “Procrastination is the bad habit of putting off until the day after tomorrow what should have been done the day before yesterday.”


Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through IAG Wealth Partners, LLC, (IAG) a registered investment advisor and separate entity from LPL Financial.

Past performance is no guarantee of future performance. In fact, the opposite can be true. The information contained in this report does not purport to be a complete description of the securities, markets, or development referred to in this material. Investing involves risk including loss of principal.

Traditional IRA account owners should consider the tax ramifications, age and income restrictions in regards to executing a conversion from a Traditional IRA to a Roth IRA.

The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.

Any opinions are those of IAG and not necessarily those of LPL Financial. Expressions of opinion are as of this date and are subject to change without notice.

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