4 Smart Financial Moves to Make Before Year-End
The end of the year is fast approaching, and it’s a perfect time to take control of your financial planning. It’s normal for money-related tasks to feel overwhelming, but a few proactive steps now can make a meaningful difference in your financial well-being. Below are four actionable strategies to consider before December 31.
Fund Your HSA
Health Savings Accounts continue to be one of the most powerful tax-advantaged tools available. For 2025, individuals can contribute up to $4,300 and families up to $8,550. Because HSAs offer triple tax benefits—tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses—they can help you prepare for both near-term healthcare costs and long-term financial planning.
Maximize Retirement Contributions
If you haven’t reviewed your retirement contributions lately, now is a great time. For 2025, you can contribute up to $23,500 to your 401(k), plus an additional $7,500 if you’re over 50. Traditional and Roth IRAs allow contributions up to $7,000, with a $1,000 catch‑up for those over 50. Boosting contributions before year-end may help reduce taxable income while strengthening your future financial security.
Strategize Charitable Giving
Year-end giving can be both meaningful and financially beneficial. Consider strategies such as donation bunching or using a donor-advised fund to maximize tax efficiency. If you’re over age 70½, a Qualified Charitable Distribution (QCD) from your IRA lets you give directly to a qualified charity and can count toward your required minimum distribution once you turn 73.
Explore Roth IRA Conversions
A Roth conversion allows you to move funds from a traditional IRA into a Roth IRA, potentially locking in tax-free growth. If you expect to be in a lower tax bracket this year, it may be an opportune time to convert. Just keep in mind that Roth conversions aren’t right for everyone—they should be evaluated annually based on your individual tax situation.
Taking a little time now can have a big impact on your financial results for the year ahead. Not every strategy will fit every situation, so consider speaking with a financial professional or CPA. When you're ready, take a moment to evaluate your options or schedule a financial check-in to stay on track.