Year-End Financial Planning Checklist: 4 Smart Moves to Consider Before the Year Ends

“These year-end steps can have a real financial impact when incorporated thoughtfully into your broader plan.”

Here are four areas worth revisiting before December 31:

1. Maximize Your Retirement Contributions

If you have capacity to contribute more to your retirement accounts, doing so before year-end can deliver two benefits: reducing taxable income and accelerating your progress toward long-term independence.

• 2025 contribution limits: 401(k) $23,500 (+$7,500 catch-up if age 50+), IRA $7,000 (+$1,000 catch-up if age 50+).
• Deadline: 401(k) contributions must be made by Dec. 31, 2025; IRA contributions can be made up to April 15, 2026.
  Even a small increase in contributions can compound meaningfully over time.

2. Review Gains and Losses for Tax Efficiency

Now is the time to evaluate realized gains and losses. Selling investments at a loss can offset capital gains and reduce taxable income, while realizing certain gains can help reset cost basis or rebalance your portfolio strategically.

• Deadline: Transactions must settle by Dec. 31, 2025, to count for the 2025 tax year.

3. Consider Charitable Giving or Qualified Charitable Distributions (QCDs)

Philanthropic planning often aligns perfectly with year-end. Whether through direct donations or QCDs from an IRA (for those age 70½ or older), charitable gifts can fulfill personal values and offer potential tax advantages. If giving is part of your legacy plan, we can help integrate it within your broader wealth strategy.

• Deadline: Dec. 31, 2025, for gifts or QCDs to be counted for this tax year.

4. Explore Income Timing Opportunities

If you expect higher income in future years, deferring certain income (such as bonuses or portfolio distributions) may lower this year’s taxable total. Conversely, if you’re in a temporarily lower tax bracket, realizing income now may make sense. Our planning process can model these scenarios to identify which approach best fits your situation.

These year-end steps can have a real financial impact when incorporated thoughtfully into your broader plan. Our team is reviewing these items with clients throughout the season to make sure key opportunities aren’t missed.

If you’d like help reviewing these year-end opportunities or want to make sure your plan is optimized before December 31, our team is here to support you. Send us a message or schedule a call. We’re happy to walk through it together.