As the end of the year draws near, our financial resource Carl Carlson, CEO & founder of Carlson Financial, joined us to talk about things we need to be thinking about for 2022.
One of those things is income taxes. If you are still contributing, set a goal to determine what type of tax account to contribute to. Carlson said to set a goal for April 1 in case a Roth IRA or IRA needs to be funded by April 15.
“So, you really need to start thinking about for 2022, 'Where should I be putting money that I'm saving?' So, you have options like you have your work 401(k) or maybe if you work for the government that's a TSP or something like that,” Carlson said.
If you are entering non-earning years, Carlson said to begin to determine withdrawal strategies and Roth Conversion strategies.
There are different types of tax or tax-free accounts available. Those accounts are tax deductible, tax deferred, tax-free, cap gains, etc.
Carlson said to set a hard date to figure out your tax situation, then set dates to fix each part of it.
Next, determine what you want your tax buckets to be holding for the years ahead: Five years, 10 years and beyond.