As the year winds down and the holidays get closer, I always like to remind clients that this is the perfect time for a quick financial tune-up. Making a few small adjustments now can go a long way toward reducing your tax bill, strengthening your savings, and setting a strong start for 2026.
These tips aren’t one-size-fits-all, but they can serve as a great checklist to make sure you’re finishing the year on solid financial footing. And, as always, before making any changes, it’s best to discuss what makes sense for your specific situation.
Here are ten smart moves worth considering before year-end:
- Review your retirement distributions.
If you’re taking Required Minimum Distributions (RMDs) or inherited an IRA, make sure you’ve withdrawn the correct amount before December 31st. The penalties for missing a distribution are steep; a quick review now can save you trouble later.
- Consider a Roth conversion.
If your income was lower this year or you expect tax rates to rise, converting part of your traditional IRA to a Roth could make sense. You’ll pay taxes now but enjoy tax-free withdrawals in retirement. It’s worth running the numbers before the end of the year.
- Put investment losses to work.
The market doesn’t always go up and that’s okay. Selling underperforming investments at a loss to offset gains (known as tax-loss harvesting) can help lower your taxable income. Be sure to keep the IRS “wash sale” rule in mind before buying back a similar investment.
- Give with purpose.
Charitable giving is one of the most rewarding ways to make an impact. You might consider donating appreciated investments, setting up a donor-advised fund, or using Qualified Charitable Distributions (QCDs) from your IRA if you’re 70½ or older. It’s a meaningful way to give back and gain potential tax advantages.
- Maximize your retirement savings.
If you’re still working, check your 401(k) or IRA contributions. Can you increase them before the end of the year? And if you’re 50 or older, don’t forget those catch-up contributions — they can make a real difference over time.
- Take advantage of your HSA and FSA.
Health-related accounts are often overlooked, but they can be powerful tools. If you have a Health Savings Account (HSA), consider maxing it out — contributions are tax-deductible, grow tax-free, and can be used for qualified medical expenses anytime. If you have a Flexible Spending Account (FSA), check your balance before it resets to avoid losing any unused funds.
- Review your tax picture.
Before the year ends, check in with your CPA or advisor about ways to manage your taxable income. Charitable gifts, retirement contributions, or realizing losses can all play a role in keeping your taxes in check.
- Revisit your investment mix.
A lot can change in a year. Reviewing your portfolio now helps make sure your investments still align with your goals, timeline, and comfort level with risk. It’s also a good opportunity to rebalance if market swings have thrown off your allocations.
- Make use of annual gifting allowances.
You can give up to $18,000 per person in 2025 without triggering gift taxes. Whether you’re helping a family member get started or supporting a cause close to your heart, gifting can be a meaningful (and strategic) way to share your success.
- Schedule a year-end review.
Finally, take time to sit down and review your overall financial plan. A quick conversation can help identify opportunities, strengthen your strategy, and ensure your goals for 2026 are clearly defined.
Let’s Wrap Up 2025 on a Strong Note
Whether you’re focused on taxes, investments, or simply getting organized, year-end planning is about ensuring your money works as hard as you do. If you’d like to review your plan or discuss which of these steps makes the most sense for you, I’d be happy to help.