Tax Time and Market Update
After the Fed’s pivot last fall led to a strong finish for both stocks and bonds, Q4 earnings results have, so far, largely supported the market’s optimism. At some point we’ll be able to stop talking about the Fed in every market update, but unfortunately, in the first half of this year, financial markets are going to fixate on the timing and speed of the upcoming rate cuts. While the Fed consensus indicates 3 expected rate cuts this year, the market has priced in around six1,2.
With Q4 GPD blowing past expectations, the worry around a sudden economic slowdown has receded and shifted to whether or not inflation can continue its downward trajectory in the face of surprisingly robust U.S. economic growth. Although the current geopolitical state of affairs is a mess, the efforts to strengthen supply chains in the wake of COVID has buffered the supply-side impact from rerouting around the Red Sea3.
That being said, tax time is soon upon us. Below are some important dates and reminders:
Secure Act 2.0 & Tax Reporting
- Secure Act 2.0 Reminder: if born from 1951 – 1959, you don’t have to take RMDs until you turn 73; if born after 1960, you will not have to take RMDs until age 75.
- Tax Reporting Season: You will begin receiving your 1099s from RJ over the next 2-3 weeks. We always caution against being in too much of a rush to file as we sometimes get notification of supplemental or corrected tax reporting. We are typically notified of impacted accounts towards the end of February and will be sure to let you know if applicable. As always, please do not hesitate to reach out with any questions you have.
- January 31: Form 1099-Q and retirement account reporting and Raymond James Bank year-end bank tax packets
- February 15: Original Form 1099s
- February 28: Delayed and amended Form 1099s
- March 15: Any remaining delayed original Form 1099s
Additional Market Information
- Our thinking hasn’t changed much from our December market update
- BlackRock’s 2024 outlook is very concise
- JP Morgan’s 2024 outlook is great, but long
As always, don’t hesitate to give us a call with any questions!
