For many families, the last few months of the year can be a blur of school events, holiday planning, and wrapping up work projects. But before the calendar flips to January, it’s worth taking a moment to look at your finances. Small steps now can make a big difference for your taxes, retirement savings, and overall financial health.
Whether you’re a blue-collar worker, a busy professional, or a small business owner, these five year-end moves can help you close out the year strong and start the next one on solid footing.
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1. Review Your Tax Withholding & Deductions
If you’ve had changes in your income, job situation, or family this year, your tax withholding may no longer be accurate. Too little withheld can lead to a surprise tax bill in April; too much means you’ve been giving the IRS an interest-free loan.
Tip: Use the IRS Tax Withholding Estimator or talk with your tax professional to make sure you’re on track before December 31.
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2. Max Out Retirement Contributions
Contributing more to your 401(k), 403(b), or IRA before the end of the year can potentially lower your taxable income and help you build long-term savings.
• 401(k)/403(b) contribution limit for 2025: $23,000 (plus $7,500 catch-up if age 50+).
• IRA contribution limit for 2025: $7,000 (plus $1,000 catch-up if age 50+).
Even a small increase for the last few paychecks of the year can help you take better advantage of your contribution room.
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3. Use Your FSA or HSA Funds
If you have a Flexible Spending Account (FSA), check your balance — many plans have a “use it or lose it” rule by year-end (or a short grace period). Schedule those dental checkups, eye exams, or buy eligible medical supplies before the deadline.
If you have a Health Savings Account (HSA), remember that unused funds roll over — but you can still use year-end as an opportunity to contribute more if you haven’t hit your limit.
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4. Plan Charitable Contributions Strategically
If charitable giving is part of your budget, timing matters. Donating before December 31 can allow you to claim a deduction on this year’s taxes (if you itemize).
You might also consider giving appreciated assets like stocks instead of cash — which can allow you to avoid capital gains tax while still supporting the causes you care about.
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5. Get Ahead on 2026 Goals
While most people wait until January to set financial goals, starting now gives you a head start. Whether it’s building an emergency fund, saving for your child’s education, or planning for a big purchase, the sooner you define your goals, the easier it is to take intentional action.
For parents considering a 529 plan:
Consider the investment objectives, risks, and charges and expenses associated with municipal fund securities before investing. More information about municipal fund securities is available in the issuer’s official statement. Please read the official statement carefully before investing.
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The Bottom Line
You don’t need a complete financial overhaul to finish the year strong — just a few thoughtful steps can put you in a better position for the year ahead.
If you’d like to talk through these strategies and see which ones fit your situation best, we can set up a time to review your goals and current plan together.
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