Family Wealth blog

Financial Checklist for End of 2022

Over a festive background of spruce needs and gold stars, a bright gold, inflated 2023 is on the left. On the right, a woman's hand is checking off boxes on a checklist. The title at the top right reads Financial Checklist for End of 2022.

What better way to start the new year than by making sure your financial planning for 2022 has all the boxes checked? From reviewing your flexible spending accounts and health savings accounts to converting funds from a traditional IRA to a Roth, there are several moves you still have time to explore before the New Year’s Eve celebrations begin.1

This is by far not a comprehensive list of items to review at end of year, but it should at least get the conversation started. As always, please consider talking with your financial advisor and tax professional before making any significant changes to your finances.

Flexible Spending Accounts and HSAs

Flexible spending accounts (FSAs) and health savings accounts (HSAs) offer an opportunity for tax-free savings that you can use on healthcare expenses. It is important to review both balances before the end of the year as any unused funds, for FSAs in particular, may be forfeited. Depending on the type of account, there may also be potential penalties if required minimum distributions (RMDs) are not taken from HSAs or 401(k)s.

Employer Benefits

If you’re not already retired, then December typically means open enrollment season. This gives you an opportunity to review current benefits offered by your employer and make changes for 2023 as needed. If you choose new coverage or switch plans during open enrollment season, these changes apply starting January 1, so now is the time to make these decisions.

Retirement Accounts

As for retirement accounts, make sure to review contributions you’ve already made in 2022 into retirement accounts such as 401(k) and IRAs. Increasing them before the end of the year might help reduce taxes owed next April. You’ll have a bit more time with your IRAs, as you have until Tax Day (April 15) to finish making contributions. If income limitations restrict you from contributing directly into a Roth account, consider converting funds from a Traditional IRA into a Roth as an option.2 This decision often depends on whether you might be changing tax brackets from one year to the next.

Rethink Your Cash Position

Having funds in cash accounts helps calm the nerves during bouts of high volatility—and when stocks you own seem to refuse to come back up where you’d like them. Increasing the amount of cash available means that you’d be less tempted to sell positions to fund, for instance, large or unexpected expenses. Discuss with your financial advisor what changes, if any, you should consider making here.

Charitable Contributions

Making charitable contributions generally reduces tax obligations and makes most people feel good while making them. Qualified charitable distributions allow money from an IRA owner age 70½ or older to be transferred directly from their IRA account to a qualified charity with no income tax imposed upon them. This means that if you’re a retiree who does not itemize deductions, you may still be able to realize additional benefits from giving.

Family Gifting

Outside of making charitable contributions, many who have the means also make the generous gesture of giving cash gifts to family members. This year, the per-recipient limit for tax-free gifting has been raised to $16,000. Keep in mind that a lifetime cap on gifting also applies. It's called the Estate and Gift Tax exemption, and the limit (currently $12.06 million per person) is subject to change based on occasional changes in legislation.3

Look in the Distance

Why wait until New Year’s to start one powerful resolution already? This last suggestion doesn’t have to do with a specific financial move or change at all. But it’s equally important. Take some time now to clear everything else aside and think about your future. Not just next year, but as far in the future as you can imagine. Think about your favorite things in life. Include your family and the younger generations as life goes on. If you have come to enjoy certain perks of having wealth, how will you increase the chances of providing such enjoyment to your children and grandchildren as well? Your financial advisor will be happy to discuss your financial, retirement, and estate plans with you before the end of the year.





Disclosure: This information is for educational and informative purposes and shall not be considered a specific recommendation. Readers are advised to speak with their advisor at JL Bainbridge to determine their specific recommendations that meet their investment objectives and to review their portfolios. The material being provided is thought to be accurate. However, the information is compiled from multiple resources and may become outdated or otherwise rendered incorrect by new research or corrections without notice. J.L. Bainbridge & Co., Inc., is not a broker dealer and does not offer tax or legal advice. Please consult your tax or legal advisor for assistance regarding your individual situation. It should neither be assumed that future results will be as profitable or that a loss could not be incurred. For more information related to our firm, please see our disclosure brochures at and

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