Planning Ahead: 4 Key Financial Moves Before Year-End

The Year-End Financial Checklist: Strategize Your Future Now

As the end of the year quickly approaches, it's the perfect time to regain control of your financial planning. We understand financial tasks can feel daunting, but the confidence gained from proactive financial decision-making is truly empowering. Let us guide you through four actionable strategies that can enhance your financial well-being before December 31st.

Strategize Charitable Giving

Consider implementing strategies like donation bunching or using a donor-advised fund to make the most of your charitable contributions. For readers over age 70½, making a Qualified Charitable Distribution (QCD) from an IRA is a smart move. This can also help fulfill required minimum distributions once you turn 73, optimizing your tax benefits.

Maximize Retirement Contributions

Take advantage of the 2025 contribution limits: $23,500 for 401(k)s, with an additional $7,500 if you're over 50. For traditional or Roth IRAs, consider contributing up to $7,000, plus an extra $1,000 if you're over 50. These contributions not only reduce taxable income but also build future wealth.

Explore Roth IRA Conversions

If you're in a lower tax bracket this year, consider a Roth IRA conversion. Converting now might be beneficial, but it's not a one-size-fits-all solution. Make this an annual review based on your financial circumstances. Caution is advised, as Roth conversions aren't ideal for everyone.

Fund Your HSA

The 2025 limits allow individuals to contribute $4,300 and families $8,550 to HSAs. HSAs offer triple tax benefits: contributions are tax-deductible, growth is tax-free, and withdrawals for medical expenses are untaxed, making them highly valuable for both short- and long-term planning.

Devoting just a bit of time to these strategies now can significantly improve your financial outcomes for the coming year. Remember, not every strategy suits everyone, and seeking advice from a financial professional or a CPA is a wise step. We encourage you to evaluate your options or schedule a financial check-in today.