It’s (almost) never too late to get important things done. We all know the saying “A rolling stone gathers no moss” and moss, in this case, is missed opportunities that expire at the end of this year (the most pressing deadline at the time, of course). Remember 529s funding, charitable contributions, portfolio sales, annual exclusion gifting and IRA Required Minimum Distributions (including inherited IRAs) must be completed by 12/31 to be recorded in the 2010 tax year.
Additionally, for those considering Roth IRA conversions, you must have the conversion complete by 12/31 to qualify for the special two-year deferral of income recognition (this is only available for conversions performed in 2010). This opportunity should be considered along with recharacterization opportunity changes, investment holdings outlook, other tax goals, etc. when deciding whether to wait or act now.
