Planning Ahead: 4 Key Financial Moves Before Year-End

As the year draws to a close, it's a perfect time to take control of your financial planning. We understand that financial tasks can sometimes feel overwhelming, but the empowerment you gain from proactive decision-making is worth it. Here, we'll walk you through four smart, actionable strategies to enhance your financial well-being before December 31st.

Strategize Charitable Giving

Charitable donations are a wonderful way to give back and simultaneously benefit your financial plan. Consider strategies such as donation bunching or utilizing a donor-advised fund to maximize tax efficiency. For those over age 70½, using a Qualified Charitable Distribution (QCD) from your IRA not only benefits charities but can also fulfill required minimum distributions once you reach 73. It's a strategy that serves both altruistic and financial goals.

Explore Roth IRA Conversions

A Roth IRA conversion could be beneficial, particularly if you're experiencing a lower tax bracket this year. Converting allows future withdrawals to be tax-free, but caution is necessary—it’s not suitable for everyone. This decision should be evaluated annually, considering personal circumstances. Seeking advice from a financial professional is always a good idea to see if it's right for you.

Maximize Retirement Contributions

Don't miss out on the opportunity to max out your retirement contributions. In 2025, the limits are set at $23,500 for 401(k)s (plus an additional $7,500 if you’re over 50) and $7,000 for traditional/Roth IRAs (with an extra $1,000 for those over 50). Contributing fully can significantly reduce your taxable income and build wealth for your future. It’s a win-win situation for both the present and the long term.

Fund Your HSA

Health Savings Accounts (HSAs) offer triple tax benefits—contributions are tax-deductible, grow tax-free, and withdrawals for medical expenses are also tax-free. In 2025, the contribution limits are $4,300 for individuals and $8,550 for families. Funding your HSA effectively can be a robust strategy for managing healthcare costs today and in retirement.

Taking just a little time now can make a significant difference in your financial picture as we head into the new year. Remember, not every strategy is right for everyone, so it's wise to consult with a financial professional or a certified public accountant (CPA). Dive into your options and consider scheduling a financial check-in to ensure you’re on the right track.