End-of-Year Financial Checklist for High Earners

It’s the time of year for singing carols, gathering with friends and family, and making sure you took care of all of those financial odds and ends that ought to be taken care of by the end of the year.

Due to my memory deficits, the only way that I can get things done is through a checklist.  If you are a high-income earner, don’t miss this financial checklist for your end-of-the-year planning.

You can convert $6,000 in Traditional IRAs to Roth IRAs each year. You can do the same for your non-working spouse if you're married. This provides $6,000-$12,000 in tax-free Roth IRA funds.

1. Backdoor Roth IRA

If you have a high income, then you need to protect it.  You can accomplish this through disability insurance obtained through one of the recommended insurance agents for doctors.

2. Life and Disability Insurance

This becomes important as there are not a lot of things a high-income earner can deduct from their taxes.

3. Charitable Giving

As the year ends, check your savings target. When I checked ours in December, we were behind. Then I remembered we hadn't done our Backdoor Roth IRA.

4. Annual Savings Goal

Unlike a Health Savings Account (HSA) – which allows you to roll over any unused money in the account – Flexible Spending Accounts (FSA) money must be consumed by a pre-determined date, which means it needs to be on your financial checklist.

5. Flexible Spending Money

Being a high income earner comes with some financial hoops you should jump through each year.  In fact, I’d argue that most people should jump through many of the hoops mentioned above.

Take Home: Financial Checklist

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