Cole Milam, MBA
Wealth Planner
As the year comes to a close, it’s essential to start preparing for tax season and ensure that all necessary requests are submitted in time. To help you stay on track, we’ve compiled the following key deadlines for your Client Care Team to process requests by year-end. Any requests received after these deadlines will be processed on a “best-efforts” basis.
Money Movement Deadlines:
November 1, 2024 – In-Kind Distributions of Equities from IRAs
Submit a request to withdraw in-kind equity positions from your retirement accounts. These will be re-registered under your name. This process can take 2-6 weeks, so it's important to submit early. This ensures reporting in 2024 tax forms.
December 6, 2024 – IRA Distributions & RMD's
Submit any requests for IRA distributions & RMD’s to ensure processing by year-end. Requests received after this date will be processed on a best-efforts basis. Retirement account distributions are reported for the tax year in which the check is cashed, not when it is written. This ensures reporting in 2024 tax forms.
December 6, 2024 – Roth IRA Conversions
Convert your Traditional IRA to a Roth IRA before the year ends. Please note that under current tax law, Roth conversions are irrevocable. The conversion amount is subject to income tax, so it’s important to consult your Wealth Planner and tax professional before making any decisions. This ensures reporting in 2024 tax forms.
December 6, 2024 – All Other Money Movement Requests
All other money movement requests should be submitted by this date to ensure processing before year-end.
December 13, 2024 – Disposition of Worthless Security Positions
Submit requests to receive a deposit receipt for securities with no transfer agent. This is essential for securities deemed worthless in 2024.
December 29, 2024 – Backup Withholding
Submit either IRS Form W-8/W-9 or an account application to avoid backup withholding on payments. After 2024, LPL will not be able to reverse backup withholding on prior transactions.
Charitable Gifting Deadlines:
December 6, 2024 – Qualified Charitable Distributions (QCDs)
If you're making charitable contributions from your IRA, submit your requests by this date to ensure processing before the end of the year.
December 6, 2024 – Charitable Contributions of Stock from LPL Accounts
For stock donations, signed paperwork must be submitted to LPL by this date to ensure shares are transferred and settled by year-end.
December 6, 2024 – Donor Advised Funds (DAF) Contributions
New Donor Advised Fund accounts and DAF grant requests must be submitted by this date to ensure contributions are processed by year-end.
Tax Preparation Deadlines:
December 6, 2024 – Federal and State Income Tax Withholding
Any changes to federal or state tax withholding must be submitted by this date to ensure they are processed before year-end. After the year closes, adjustments cannot be made retroactively to 2024 distributions.
December 31, 2024 – Trade Settlements and Adjustments
To be reported on 2024 tax forms, all trades must settle by this date.
December 31, 2024 – Qualified Plan Establishment
All qualified plan documents (e.g., 401(k)/profit sharing plans) must be adopted by this date to be effective for the 2024 plan year.
Preparing for Year-End
Now is the perfect time to schedule a meeting with your financial professional to discuss your year-end planning. Whether you’re taking required minimum distributions (RMDs), considering Roth conversions, or making charitable gifts, we can guide you through the process to maximize your tax benefits and ensure everything is submitted on time.
If you have any questions or need further clarification on these deadlines, please don’t hesitate to contact your Client Care Team. We look forward to helping you wrap up 2024 successfully and start 2025 on the right financial footing.
Disclosures
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
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This information is not intended to be a substitute for individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.
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Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.
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