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End-of-the-Year Banking To-Do List

December 5, 2023

 It is hard to believe it, but the end of the year is just around the corner.  During this busy holiday season of get-togethers and shopping, it can be easy to forget the things that need to be completed by the end of the year banking wise.  In an effort to help, a list of banking to-dos can be found below:

Tax Preparations

There can be many reasons why you may need various forms of banking information when it comes to file your taxes for 2023.  It is recommended that you touch base with your tax preparer to see if there are specific items you may need, but here are a few items that could help with your preparations:

Interest Payments

For those who have business loans where interest paid can be considered tax deductible, it is important to make any final interest payments before the end of the year. There are many ways you can make an interest payment including through online banking, over the phone, or stopping by your local Rivers Edge Bank location.  For the bank’s holiday hours and end-of-year cutoff times, visit https://riversedge.bank/news/rivers-edge-bank-holiday-hours. If you are unsure on the tax implications of end-of-the-year interest payments, please consult with your tax preparer.

 IRA Transactions

If you have an IRA, you may want to make a contribution or take a distribution from your account.  These transactions can have tax implications and deadlines that need to be met. Here are a couple of reminders of the rules pertaining to contributions and distributions: 

  • Contributions – The IRA contribution limits for 2023 are $6,500 for those under age 50 and $7,500 for those age 50 and older.  Contributions should be made by April 15, 2024.  When making a contribution to your IRA, please make sure to communicate with the customer service representative for which tax year you would like the contribution to be considered.
  • Distributions – Once you reach age 59 ½, you may take distribution from your Traditional IRA without restrictions or penalties.  If you are over age 70 ½, you may be required to take a Required Minimum Distribution (RMD) by December 31, 2023.  If you are unsure of your RMD status, please contact your local Rivers Edge Bank location or speak with your tax advisor. If your RMD is not taken by the end of the year, you may be subject to penalties.

Charitable Donations

It is the holiday season and you may have charity on your heart.  Making charitable donations not only provides a feel-good moment and support of others, but it can also provide a tax benefit.  To gain that potential benefit, it may need to be made by the end of the year.  If that is something that is on your radar, it would be beneficial to speak with a tax advisor to understand the benefits and the timing required.

Tax Forms

After the first of the year, the bank will begin producing tax documents that you may need, such as 1098s, 1099s, and IRA tax documents.  These will be sent starting the last week of January. Keep your eye out for those so you can put them in a safe place to give to your tax preparer.  For those who may receive a 1099 due to interest earned in 2023, please note if the amount of interest earned was less than $10.00 for the year, a 1099 will not be printed and sent. 

This time of the year is always filled with lots of fun activities and events so it can be difficult to remember everything that needs to be done.  If you have any questions regarding the above information, please do not hesitate to reach out to your local REB location.  We are here to help. Happy Holidays from your friends and neighbors at Rivers Edge Bank!

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