Question: Sean in Ft. Mitchell: Any end-of-year tax tips you can share?

A: Review your retirement contributions ASAP. This late in the year, you might only have one or two more pay periods to make any adjustments. In 2022 you can contribute up to $20,500 in a 401(k)/Roth 401(k) (up to $27,000 if you’re 50 or older). As a reminder, a 401(k) is a tax-deferred account that gives you a tax break now while a Roth 401(k) gives you a tax break down the road.

Also, if you’re set to receive a year-end bonus, take a look at your income this year versus what you might think it will be next year. If next year’s will be lower, see if your employer will defer that bonus until 2023. This way, you’ll pay taxes on that extra income during a tax year in which your tax bracket is likely lower.

Have any taxable investments that lost money? (Given the market’s performance this year, you probably do!) If you’re in a higher tax bracket, consider tax-loss harvesting. By selling these investments for a loss, you can off-set up to $3,000 of your ordinary income. Conversely, if you’re currently in a lower tax bracket, consider selling any gains – depending on your bracket you could potentially pay zero taxes on long-term gains! (But in either case don’t sell just for the sake of getting a tax break. Remember, your investment goals should have a long-term focus.)

Of course, there’s always the gift of charity. But don’t forget, charitable donations only reduce your tax burden if you itemize (the $300 above-the-line deduction for filers who took the standard deduction in 2020 and 2021 hasn’t been extended for the 2022 tax year).

And one more tip: If you have an FSA (Flexible Spending Account) be sure to spend all your money on qualified healthcare expenses by the end of the year – otherwise you lose that money. However, some employers offer FSA grace periods, so be sure to check with your HR department.

The Allworth Advice is that you need to hustle if you’re going to make any tax moves by the end of the year. As always, a trusted tax professional can help.

Q: S.B. in Montgomery: I’m intrigued by the idea of a post-nuptial agreement. How does someone know if it’s a good idea for their situation?

A: A post-nuptial agreement is similar to a pre-nuptial agreement in that it outlines the division of assets in the event of divorce or separation. However, as the name implies, a post-nuptial agreement is created after the marriage has already taken place.

There are a couple of scenarios for which a post-nup could make sense: Perhaps the financial dynamic between you and your spouse has changed (for example, one of you received an inheritance), or maybe a previously unknown issue was brought to light (such as if your spouse has more debt than you thought). Just know that certain criteria must be met for a post-nup to be valid and that laws can differ by state — for instance, they’re not even enforceable in Ohio, though legislation was introduced in 2021 to allow them.

Here’s The Allworth Advice: If you’re considering getting either a pre-nuptial agreement or post-nuptial agreement, be sure to work with an attorney. He or she can determine which – if either – is best for your specific situation.

Every week, Allworth Financial’s Amy Wagner and Steve Sprovach answer your questions. If you, a friend, or someone in your family has a money issue or problem, feel free to send those questions to yourmoney@enquirer.com.

Responses are for informational purposes only and individuals should consider whether any general recommendation in these responses is suitable for their particular circumstances based on investment objectives, financial situation and needs. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional adviser of his/her choosing, including a tax adviser and/or attorney. Retirement planning services offered through Allworth Financial, an SEC Registered Investment Advisor. Securities offered through AW Securities, a Registered Broker/Dealer, member FINRA/SIPC. Visit allworthfinancial.com or call 513-469-7500.

This article originally appeared on Cincinnati Enquirer: Allworth Advice: End of year tax reminders