As 2010 draws to a close, there are a number of financial aspects you need to start considering if you want to put yourself in position for a great 2011. Often, as we plan for the end of the year, we ignore important things we can do to improve. our financial life. To make sure that doesn’t happen to you, here are some action items to examine before the ball drops and the champagne corks explode.

First, it is important to pay attention to your IRA. Reduce your taxable income by maximizing your retirement contributions. Contribution limits for traditional and Roth IRAs remain at $ 5,000, with an additional $ 1,000 recovery contribution for those age 50 and older by the end of 2010. Therefore, you can contribute up to $ 6,000 to a Roth IRA. or traditional. if you are 50 or older.

With IRAs, it is also important to see if you need to withdraw money. Make sure you, or older family members, take the required mandatory distribution (RMD) from IRA accounts. The government requires people over the age of 70½ to take an annual distribution of a fixed amount (if this distribution is not taken, there are tax consequences).

At the end of the year, it is also important to review your portfolio and the positions you hold. See if you have any capital gains realized this year from the sale of stocks or mutual funds. When you’ve added your gains, check to see if there are losses that can be carried over from previous years to offset these gains. If there aren’t, consider selling underperforming stocks.