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The LynnLeigh JournalLife. Investing. And Everything in BetweenThe end of the year is a time for reflection, celebration, and yes—alittle planning. By taking some strategic steps now, you can reduceyour income taxes, maximize charitable giving, and positionyourself for financial success in the new year. To help, we’ve createdan 8-step year-end checklist packed with insights and pro tips. Let’sdive in!YEAR-END STRATEGIES: MAKE THEMOST OF 2024 BEFORE IT’S GONEBy Kelly L. Olczak, CFP® NewsletterHighlightsD E C E M B E R 2 0 2 4V O L U M E 1 2Our Gratitude...Market Commentary:Tax Strategies Can SaveYou MoneyDon’t Miss RMDsCharitable Giving has DualBenefitsReview ROTH ConversionOptionsElection Results & MarketClarityOptimism Around TaxReformTariff UncertaintyStrong Market ConfidenceYear-End To-Do ListHarvesting Losses: Turn Losses IntoOpportunitiesEven in strong markets, not every investment will perform as hoped.Tax-loss harvesting can help soften the blow. This involves selling aninvestment in a taxable brokerage account for less than its purchaseprice. Here’s how it works:1

2D E C E M B E R 2 0 2 4 V O L U M E 1 2Offset Gains or Income: Use the loss to offsetgains in a taxable account or reduce your taxableincome by up to $3,000 annually.Carry Losses Forward: If your losses exceed$3,000, they can be carried forward to offsetincome or gains in future years.Pro Tips:Review your portfolio in early December toidentify underperforming assets.Create a plan to reinvest the proceeds into adiversified portfolio.Important RemindersShort-Term vs. Long-Term Gains: Investments held for one year or less are taxed as ordinaryincome. Long-term capital gains (held longer than a year) benefit from lower tax rates (0% to 23.8%,including the 3.8% net investment income tax).Wash Sale Rule: Avoid repurchasing the same or a “substantially identical” security within 30 daysbefore or after the sale, or the loss won’t count.Harvesting Gains: Unlock Tax-Free Growth2If your taxable income in 2024 falls below certain thresholds, you may qualify for a 0% federal tax rate onlong-term capital gains:Single Filers: $47,025 or lessJoint Filers: $94,050 or lessHeads of Household: $63,000 or less

4Why This MattersPro Tip:3D E C E M B E R 2 0 2 4 V O L U M E 1 2By selling an appreciated asset held for morethan a year, recording the gain, and immediatelyrepurchasing it, you can increase the cost basisof the asset without triggering federal taxes.However, be cautious—a higher adjusted grossincome might:Increase state taxesRaise premiums for Marketplace healthinsurancePush you into a higher bracket, especially ifpaired with a Roth conversionBundle this strategy with end-of-year charitable giving to offset any unintended tax increases.Required Minimum Distributions (RMDs): Don’t Miss This DeadlineRMDs are the minimum amounts you must withdraw annually from select retirement accounts, liketraditional IRAs, once you reach a certain age. Missing an RMD can result in steep penalties.

5D E C E M B E R 2 0 2 4 V O L U M E 1 2When Do You Start? If you were born between 1951and 1959, RMDs begin at age 73. For those born in1960 or later, the starting age is 75.First-Year Flexibility: You can delay your first RMDuntil April 1 of the following year, but you’ll need totake two RMDs in that year.Watch Out for IRMAA: Higher withdrawals can pushyou into a higher tax bracket and trigger surchargeson Medicare premiums.Still Working? If you’re enrolled in a qualified retirement plan at your current employer and don’town more than 5% of the business, you might be able to postpone RMDs.Schedule your RMD early in November to avoid last-minute complications or delays.Reduce Your RMD with a QCDA Qualified Charitable Distribution (QCD) lets you satisfy your RMD while supporting your favoritecharity tax-free. If you’re 70½ or older, you can transfer up to $105,000 directly from your IRA to aqualified charity without including the amount in your taxable income.Avoid taxes on RMD amountsSupport causes close to your heartTake advantage of the inflation-adjusted limit (new in 2024)Why Consider a QDC?Key PointsPro Tip4

6D E C E M B E R 2 0 2 4 V O L U M E 1 2What’s Your Current Tax Rate? If it’s lower now than it will be in retirement, a conversion may makesense.Can You Pay Taxes from Outside Funds? This maximizes the conversion’s benefits.State Considerations: Moving states may impact tax rates on future withdrawals.Should You Consider a RothConversion?Converting a traditional IRA to a Roth IRA can create tax-freegrowth, but it requires careful planning. The conversion amountis taxable in the year of conversion, so timing is everything.Work with a your tax preparer simulate tax impacts and ensure you’re making the most of this strategy.Max Out Your HSA ContributionsA Health Savings Account (HSA) offers triple tax advantages: tax-free contributions, tax-free growth, andtax-free withdrawals for qualified medical expenses. In 2024, contribution limits are:Individual: $4,150Family: $8,300Catch-Up (Age 55+): Additional $1,000Use HSA funds for big-ticket medical expenses to stretch your budget.Save receipts for smaller medical expenses—reimburse yourself tax-free later.Question to Ask:Pro TipPro Tip56

7D E C E M B E R 2 0 2 4 V O L U M E 1 2Fund a 529 Plan: Invest in EducationA 529 education savings plan is a tax-advantagedway to prepare for future education expenses.Contributions grow tax-free, and withdrawalsremain tax-free when used for qualifiedexpenses. These plans are particularly useful forgrandparents looking to leave a legacy or parentsplanning for college costs.Research state tax deductions or credits for 529 contributions—some states offer additional savings!Donate Appreciated AssetsDonating assets that have appreciated can save on taxes while supporting a cause you care about.Instead of selling the asset and donating the proceeds, donate the asset directly to avoid capital gainstaxes and potentially deduct the fair market value.Deduction is capped at 30% of your adjusted gross income.The asset must be held for more than one year.Limitations to Note:Consult with a tax advisor to ensure the donation aligns with your overall tax strategy and charitablegoals.Pro TipPro Tip78

8Taking proactive steps before December 31st can make a big difference for your finances. Whether it’sreducing your tax bill, supporting charities, or positioning your investments, these strategies aredesigned to help you end the year on a high note. If you have questions or want tailored advice, reachout to us. We’re here to help you make the most of 2024 and beyond!Elections and politics often bring lively debates, with opinions as varied as the individuals offeringthem. In our space, we’ll set aside political preferences and focus on what the results mean for themarkets—a perspective shaped by the collective view of investors.N O V E M B E R 2 0 2 4 V O L U M E 1 1Final Thoughts...Market Update: A Look Through the Lens of InvestorsLast month, the Dow and the S&P 500 Index recorded their strongest gains of the year, reaching newhighs. The small-cap Russell 2000 Index also hit a significant milestone, surpassing its prior high fromNovember 2021. Two key factors contributed to this broad-based rally:November’s Market PerformanceElection Clarity: The election outcome was uncontested, reducing uncertainty in the markets.Pro-Business Sentiment: Investors see Donald Trump as fostering a business-friendlyenvironment, fueling optimism for deregulation and potential tax reforms.

9The 2017 Tax Cuts and Jobs Act (TCJA), which lowered the corporate tax rate from 35% to 21%, is set toexpire for individuals at the end of 2025. Investors are hopeful for an extension or permanentimplementation of these reforms. Trump’s economic proposals include:D E C E M B E R 2 0 2 4 V O L U M E 1 2Tax Reforms and ProposalsEliminating taxes on tips, overtime pay, and Social Security benefitsReducing the corporate tax rate on domestically produced goods to 15%To paraphrase Warren Buffett: A lower corporate tax rate directly benefits investors by increasing theshare of profits retained by companies. Under the previous 35% corporate tax rate, 65 cents of everydollar earned went to investors, with the remaining 35 cents going to the government. At today’s 21%rate, investors retain 79 cents per dollar. This increase in earnings is a critical driver of stock prices.The Impact of Tax Rates on InvestorsWhile these proposals are ambitious, passing them through a narrowly Republican-controlled Congresscould present challenges. Competing priorities may emerge during negotiations, and Republican deficithawks might push for more measured changes.

10While Trump’s tax proposals have largely been met with approval, his stance on tariffs has introducedcaution. Tariffs can increase domestic prices and provoke retaliation from trading partners, creatinguncertainty for U.S. exporters. For now, investors are focused on the pro-business agenda, with tariffstaking a back seat to the optimism driving major indexes higher.D E C E M B E R 2 0 2 4 V O L U M E 1 2Tariffs: A Source of UncertaintyStocks appear to be heading in a good direction, reflecting high investor confidence. Diversified equityexposure has rewarded investors, but markets remain sensitive to unexpected developments. Anydisruptions to the economic agenda or global trade could trigger volatility.We hope this market review provides clarity and insight as you navigate the current investmentlandscape. Should you have any questions or wish to discuss your portfolio, please don’t hesitate to reachout.While the markets are keeping us on our toes, let’s take a moment to unwind. The holiday season isn’tjust about strategies and planning—it’s also about enjoying the little things that make this time of yearmagical. Looking AheadOur Gratitude This Holiday SeasonLastly, as we wrap up the year, we want to pause and reflect on what truly matters: the relationshipswe’ve built with each of you. Your trust, loyalty, and partnership are the foundation of what we do, andwe are deeply grateful for the opportunity to serve you.This season is a reminder of how fortunate we are to work with incredible clients like you. Whether we’vehelped you navigate challenges, plan for the future, or celebrate milestones, it’s been our privilege tosupport you every step of the way.

D E C E M B E R 2 0 2 4 V O L U M E 1 211LynnLeigh & Company - A Registered Investment AdvisorThis information is provided by LynnLeigh & Co. for general information and educational purposes based upon publicly available information from sources believed to be reliable – LynnLeigh& Co. advisors cannot assure the accuracy or completeness of these materials. The information presented here is not specific to any individual’s personal circumstances. To the extent that thismaterial concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayershould seek independent advice from a tax professional based on his or her individual circumstances. The information in these materials may change at any time and without notice. Pastperformance is not a guarantee of future returns. Looking ahead to 2025, we’re excited tocontinue working together to help you achieveyour goals and dreams. Your success is oursuccess, and we’re here to ensure yourfinancial journey is one of confidence andclarity.Thank you for being part of our community.From all of us, we wish you a joyful holidayseason filled with peace, happiness, and timespent with loved ones.Happiest of Holiday Seasons!From Your Team at LynnLeigh & Company