Wrap up 2014 with a clean financial slate

To get a running start on 2015, make time between holiday obligations to take care of financial and household business that needs to be wrapped up before the end of the year. Here are some possibilities:

• Are there any credits cards you can pay off now and start the New Year with a zero balance?

• Make donations to a charity so you get the tax deduction for 2014. Review Charity Navigator, CharityWatch and GuideStar to be sure your money is going to a worthy cause and not administration fees.

• Calculate your tax withholding to be sure it's on target so you don't pay extra taxes starting in 2015. Births, deaths, marriage and divorce all are reasons to review your withholding. Don't cut it too close, but paying extra (and getting a big refund in April) means you're giving an interest-free loan to the government.

• Determine whether you can make an additional contribution to your 401(k). Whatever you put in your account is tax deferred until the money is withdrawn.

• If you own a home, make one additional mortgage payment before the end of the year. Do it early enough that it arrives in the mail and is processed so it shows up on your end of year Form 1098 statement.

• Check the balance of your medical flexible spending account and try to use it up before the end of the year when you could lose it. You're only allowed to roll over $500 into 2015. Some companies allow a grace period to March before the funds must be used or lost, but determine your company's policy to be certain. Make appointments for eye exams and glasses, have periodic lab work done and schedule a medical checkup.

• Review your life-insurance policies and retirement accounts, not only to see if they need to be changed in any way, but to consider the beneficiaries of both. If there have been births, deaths, marriages or divorces, or minors becoming adults, you might want to make changes.

• Open an IRA, if you don't have one. The income is tax deferred. The limit is $5,500, or if you're age 50 and older, the limit is $6,500.

• If you have property taxes that are partially due in 2015, pay the total amount in advance and deduct on Schedule A.

David Uffington regrets that he cannot personally answer reader questions, but will incorporate them into his column whenever possible. Send email to [email protected]. (c) 2014 King Features Synd., Inc.