Your Essential Year-End Financial Planning Checklist

As we head into the final months of the year, it’s a great time to pause, review, and make sure you’re taking advantage of opportunities that can help you save on taxes, grow your retirement savings, and give more strategically. Here are some key moves to consider before year-end: 

1. Max Out Retirement Contributions 

If you’re still working, consider increasing your retirement plan contributions before December 31. Workplace plans—including 401(k), 403(b), 457, and the Thrift Savings Plan—allow contributions up to $23,500, with an additional $7,500 catch-up for those age 50 and older. For individuals aged 60–63, the enhanced catch-up contribution limit rises to $11,250.  

Traditional and Roth IRAs also offer opportunities to save, with a $7,000 annual limit and a $1,000 catch-up for those 50+.  

Even small adjustments to contributions before year-end can meaningfully boost long-term savings and may reduce taxable income. 

2. Consider a Roth Conversion 

If you expect to be in a higher tax bracket in future years, a Roth conversion may be worth exploring. Converting part of a traditional IRA into a Roth IRA allows for tax-free withdrawals later, but the converted amount is taxed today—making this strategy particularly beneficial in lower-income years. Many people aim to convert up to the top of their current tax bracket to avoid pushing income into a higher one.

3. Take Required Minimum Distributions (RMDs) 

Individuals age 73 or older—and those with inherited IRAs—need to take RMDs by December 31 to avoid steep penalties. Since RMD rules have changed recently, reviewing the specifics of your situation is important. If you do not need the income from your RMD, a Qualified Charitable Distribution (QCD) may be a tax-efficient alternative.

4. Make Qualified Charitable Distributions (QCDs) 

For those age 70½ or older, directing gifts to charity straight from an IRA can be a powerful strategy. In 2025, individuals can make up to $108,000 in QCDs. These distributions can satisfy some or all of your RMD and, importantly, they keep the donated amount from being included in taxable income. 

5. Use Charitable Giving Strategies 

If charitable giving is a priority, you may benefit from planning your contributions thoughtfully. Some individuals “bunch” multiple years of donations into one tax year to maximize itemized deductions. Donor-Advised Funds (DAFs) can also provide flexibility: you receive an immediate deduction while having the option to distribute gifts to charities over time. Donating appreciated stock can offer an additional tax advantage by avoiding capital gains.

6. Harvest Tax Losses 

Selling investments in taxable accounts that have declined in value can help offset realized capital gains from other holdings. Losses can offset gains dollar for dollar, and up to $3,000 of net losses can be used to reduce ordinary income. Just be cautious of the wash-sale rule, which disallows certain losses if you repurchase the same or similar investment too soon. 

7. Review Medicare Coverage 

Medicare Open Enrollment runs from October 15 to December 7, making this an ideal time to evaluate your coverage. Reviewing your current plan—especially prescription coverage and supplemental policies—can uncover opportunities to reduce premiums or improve benefits. Many people find it helpful to consult with an experienced agent during this process. 

8. Revisit Your Social Security Strategy 

If you have not yet claimed Social Security, reviewing the timing of your benefit start date can be valuable, particularly if your income or work plans have changed. For those already receiving benefits, it’s wise to confirm that withholding amounts are appropriate to avoid tax surprises in the spring.

9. Consider Gifts to Family 

The 2025 annual gift exclusion is $19,000 per recipient, allowing you to support children, grandchildren, or others without generating gift-tax filing requirements. Contributions to 529 education savings plans can also be a highly tax-efficient way to help family members.

10. Review Estate Documents 

Year-end is a natural moment to revisit important legal documents. Confirm that your will, trusts, and beneficiary designations reflect your current wishes. It’s also important to ensure that both financial and healthcare powers of attorney are up to date.

11. Check In on Your Financial Plan 

A brief review of your overall financial plan can help ensure you’re aligned with long-term goals. This may include revisiting withdrawal strategies, adjusting for inflation, or accounting for unexpected expenses that arose during the year. 

12. Update Tax Withholdings 

Finally, reviewing your tax withholding and estimated payments can help ensure they match your expected 2025 tax situation. This simple step can prevent both an unpleasant bill at tax time and unnecessary overpayments.

Taking a little time now to review these areas can make a meaningful difference in your long-term financial success. If you’d like to talk through any of these strategies or explore what makes the most sense for your situation, our team is here to help.