4 Smart Financial Moves to Make Before the Year Ends
The end of the year is fast approaching, making this a great moment to take control of your financial planning. It’s completely normal for financial tasks to feel overwhelming, but taking small,proactive steps now can make a meaningful difference in your long‑term financial well‑being. Below are four practical strategies you can consider before December 31st. The order is randomized to keepthings fresh and engaging.
Strategize Charitable Giving
Year-end is an ideal time to review your charitable plans. Consider strategies like donation bunching or using a donor-advised fund to maximize potential tax benefits. If you’re over age 70½, youmay also use a Qualified Charitable Distribution (QCD) from your IRA. A QCD can count toward your required minimum distribution once you turn 73, potentially reducing your taxable income whilesupporting causes you care about.
Fund Your HSA
Health Savings Accounts offer triple tax advantages—contributions are tax deductible, growth is tax deferred, and qualified withdrawals are tax free. For 2025, HSA limits are $4,300 for individualsand $8,550 for families. Whether you’re planning for upcoming medical expenses or building long-term reserves, an HSA is one of the most powerful tools available.
Explore Roth IRA Conversions
A Roth conversion involves moving funds from a traditional IRA to a Roth IRA, allowing future withdrawals to be tax free. If you anticipate being in a lower tax bracket this year, it may be a goodtime to convert. Keep in mind that Roth conversions aren’t right for everyone, and it’s wise to evaluate this option annually based on your personal circumstances.
Maximize Retirement Contributions
If you’re looking to reduce taxable income and strengthen your retirement savings, contributing the maximum to your accounts can help. For 2025, 401(k) limits are $23,500, with an additional$7,500 catch-up contribution for those 50 and older. Traditional and Roth IRAs allow up to $7,000 in contributions, plus a $1,000 catch-up if you’re over 50. Making the most of these opportunitiesnow can help you build meaningful financial security for the future.
Taking even a little time to review your options now can make a big difference in how you finish the year financially. Everyone’s situation is unique, so not all strategies will apply the sameway. It’s always a good idea to consult with a financial professional or CPA. If you’re ready to explore your choices, consider setting up a year-end financial check-in to keep things on track.