Fifth Third Bank Recommends Key Year-End Tax Planning Strategies

CINCINNATI--()--Fifth Third Bank (NASDAQ: FITB) offers strategy guides and video to help individuals and families consider proactive year-end tax planning and charitable giving as 2015 comes to a close. The three areas to consider include reducing your taxable income, maximizing tax-qualified plans and charitable giving.

1. Reducing your taxable income

In order to offset taxable income, the most important strategy for investors to consider is tax-loss selling and taking advantage of underwater securities.

“Selling stocks, bonds or mutual funds that have lost value should be a priority this time of year,” said Jeff Korzenik, chief investment strategist for Fifth Third Bank. “When done in conjunction with rebalancing a portfolio, investors can minimize the tax consequences and impact.”

Additionally, Korzenik suggests taking interest rates into account when planning for 2016. Gradual interest rate increases are being monitored for next year, which are typically associated with the latter half of an economic expansion. With this in mind, investors should expect lower returns from the bonds portion of a portfolio and be more selective in their equity investments as they plan for next year. For more information on reducing your taxable income, please click here.

2. Maximizing tax-qualified plans

To wrap up 2015, Melissa Register, senior wealth manager for Fifth Third Private Bank, suggests fully funding any tax-qualified retirement plans including 401Ks, IRAs, 403Bs and others. The maximum annual contribution amount for a 401K or 403B is $18,000 and an additional $6,000 for people ages 50 years and older. A simple IRA allows an annual contribution of $12,500, with an additional $3,000 for those 50 and older.

“In order to maximize tax-qualified plans, clients can make adjustments on their remaining paystubs for the year or apply a year-end bonus,” said Register. “The added benefit is this will reduce your income for the year and place you in a lower income bracket.”

Register also noted that business owners should spend time with their CPA to decide whether to accelerate or defer expenses into this year or next year. For more information on maximizing tax-qualified plans, please click here.

3. Plan for charitable giving during the holidays

When planning for charitable giving, two best practices are to engage your family and be strategic.

“It should come as no surprise that more than half of charitable giving by families is done in one month of the entire year; December,” said Glen Johnson, managing director of Mirador Family Wealth Advisors. “But this leaves little time to think strategically about where cash or other complex assets are contributed.”

By starting the discussion as families gather for the holidays, notably during Thanksgiving, families can identify goals and make joint decisions on how and where to allocate philanthropic donations. For best results, families should not only focus on closing out 2015, but developing a strategy for 2016 as well. Johnson notes it’s also an opportune time for families to discuss with younger generations about why they give.

Additionally, Johnson suggests using assets that have appreciated in value as gifts for charitable donations to avoid capital gains. “People often don’t think about real estate, collectibles or art as potential gifts, which could ultimately fund new a program or service for a charity,” said Johnson. For more information on charitable giving, please click here.

For more information on tax planning and other tips or to identify a Fifth Third advisor to assist with your year-end tax planning, visit If you are a journalist/blogger and would like to add these videos or guide to your website, please email

About Fifth Third Bank

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. The Company had $142 billion in assets and operates 1,295 full-service Banking Centers, including 99 Bank Mart® locations, most open seven days a week, inside select grocery stores and 2,650 ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania, Missouri, Georgia and North Carolina. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Investment Advisors. Fifth Third is among the largest money managers in the Midwest and, as of September 30, 2015, had $297 billion in assets under care, of which it managed $25 billion for individuals, corporations and not-for-profit organizations. Investor information and press releases can be viewed at Fifth Third’s common stock is traded on the NASDAQ® Global Select Market under the symbol “FITB.” Fifth Third Bank was established in 1858.

This information is intended for educational purposes only and does not constitute the rendering tax or legal advice. Please contact your tax advisor or attorney for advice pertinent to your personal situation.

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Fifth Third Private Bank is a division of Fifth Third Bank offering banking, investment and insurance products and services.

Fifth Third Bancorp provides access to investments and investment services through various subsidiaries. Investments, investment services, and insurance: Are Not FDIC Insured Offer No Bank Guarantee May Lose Value Are Not Insured By Any Federal Government Agency Are Not A Deposit Insurance products made available through Fifth Third Insurance Agency, Inc.


Fifth Third Bank
Sean Parker, 513-534-6791


Fifth Third Bank
Sean Parker, 513-534-6791