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2023 Year-End Financial Moves

September 18, 2023

Blog:  2023 Year-End Financial Moves


It’s hard to believe but Autumn is upon us this week and, before we know it, we’ll be looking at the end of 2023.  Time sure flies.

To that end, it’s time to prepare for some financial moves to be made before the end of the year.


Your Budget

Everything starts with a plan, and the financial plan always starts with a solid budget. 

Take a close look at your budget to see how you’ve fared over the course of the year, and make adjustments where needed.  With the holidays approaching, having a handle on what you can afford is critical so that you don’t overspend and acquire credit card debt. 


Retirement Plans

Be sure that you’re on target to make the maximum contribution to your retirement plan, if possible.  For those in a company 401(k)/457/403(b) plan, the limit for 2023 is $22,500 (or $30,000 if you’re over 50).  

Even if you cannot make the maximum contribution, be sure to at least contribute up to the amount of the company match.  By not contributing, you could be missing out on company money that could be going into your account.  In other words, don't leave money on the table.

If you don’t have a company retirement plan to contribute to, the limit for a Traditional or Roth IRA in 2023 is $6,500 (or $7,500 if you’re over 50).    


Tax-Loss Harvesting

Talk to your accountant about your anticipated tax situation and, if you expect to have a large tax liability, consider selling investments that have lost value in order to offset capital gains and reduce your tax liability.  The IRS has specific regulations, called "wash-sale rules", that need to be followed with this strategy.  Be sure to get professional tax advice.


Charitable Giving

Be sure to make your charitable donations prior to the end of the year and keep detailed records of your contributions.  Making contributions now, rather than at year's end, might help those charities to fund their holiday efforts.


Use Flexible Spending Account (FSA) Funds

If you have a flexible spending account, use the funds before they expire.  FSA funds are considered “use it or lose it.”  Be sure there are no funds left in the account at the deadline for your plan.  


Required Minimum Distributions (RMDs)

If you’re 73 or older (or if you have a beneficiary IRA), the IRS requires you to take minimum distributions from that account each year.  You must take the RMD by year-end.  RMDs that are not taken are subject to a 25% IRS penalty, so be sure to make the necessary withdrawals.


Review Your Estate Plan and Safety Devices

The end of the year is a good time to review your will and estate plan to be sure it still does what you intend it to do.  It’s also a good time to check your home for safety.

In my house, I review the estate plan, change the smoke detector batteries, check the fire extinguishers, and test out the generator on New Year’s Day.  I look at it as starting the year by protecting my family.

As always, please don’t hesitate to contact me with any questions.






Neither Joseph A. Dispenza nor Dispenza Financial, LLC, are tax advisors.  See your tax advisor for specific tax advice

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing includes risks, including fluctuating prices and loss of principal.