Many people who work in sales and marketing refer to the final quarter of the year as, OND – October, November, December. OND is a heady rush of holidays, finalizing projects, using up your department budget at work, and spending time with family and friends. I joke that it’s the start of one big holiday, HallowThanksMas; Halloween, Thanksgiving, and Christmas all jammed together. Better start that diet now before all of the dinners and parties. OND is upon us so what should you be doing for OND from a financial planning perspective? Let’s take a look at a brief overview of each month.
October- Long considered open enrollment for Medicare, October may also be open enrollment at your place of employment. Employers tend to offer benefits fairs either in the spring or fall, or both. For many companies, it’s around October so be alert. Some things to look for include making changes to your health coverage, assessing new benefits offered by your employer, and possible additions or changes to your retirement plans. What’s offered and by whom varies by employer of course, so be sure to attend your company’s benefits fair to see what may be available.
Filed a tax extension back in May? It’s time to finalize that return and either pay taxes due or make an arrangement with the IRS. If you filed IRS Form 4868 to extend the filing date of your tax return, that due date is October 15. The clock is ticking!
Speaking of tax, if you are going to hire a tax preparer, now is the time to shop for one if you don’t already have someone. Waiting until spring of 2025 in the midst of tax season is never a good time to look for a professional preparer. In your search, ask me for a referral, and if you are going it alone, at least look for a preparer with the EA (enrolled agent) designation after their name.
November- People mostly think of spending money in November thanks to Black Friday. Personally, I don’t like the frenzy and pressure of Black Friday. To be honest, many of the deals are not the deals they are cracked-up to be. Be smart about your Christmas spending and read my tips from July’s post, Save in July for Christmas. Even though it’s OND, you can still put some of the tips to use.
One area where you can spend, is in your Flexible Savings Account (FSA). If you have a balance in your FSA plan (whether medical or dependent plan) you can only carryover up to $640 into the next plan year. Consider spending money on qualified medical expenses before December 31. Medical and dependent FSAs generally have different rules so check your plan details closely, or ask your benefits department to clarify.
December- Last month of the year! By the way, how did this year’s resolutions go? Don’t worry, you get to make new ones at New Year’s. December is the cutoff for many annual financial planning activities such as tax-loss harvesting, closing real estate deals, or charitable giving if you want to even consider taking the tax deduction or credit in the current year. Make sure you complete key transactions by December 31.
That’s it. Just a quick overview of preparing for OND. Your personal balance sheet and financial planning “to do” list may contain more items. For some, buying or selling of employer equity may need to be completed in this OND period. For others, transferring property may need to take place. Some of you may be looking for ways to increase income or you might be eyeing changes for 2025 already. Whatever your situation, the OND countdown is on, so mind those key dates!
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