Year-End Financial Checklist
The last few months of the year always seem to fly by. Between holiday plans and wrapping up work projects, it’s easy to forget about (or intentionally ignore) your finances. But taking a little time now to check a few boxes can have a big impact, especially when it comes to taxes and retirement savings. Market returns have been strong this year, but it’s important to remember that’s only one aspect of a good financial plan. A solid strategy also involves optimizing efficiency in other areas.
Here’s an updated list of what you might want to tackle before year’s end.
Year-End Financial Review Items
1. Max Out Your Retirement Contributions
Retirement accounts like 401(k)s and IRAs remain great tools for lowering taxable income while building long-term wealth. Take a moment to check how much you’ve contributed this year, there’s still time to increase or max out your contributions. If it makes sense for your situation, a Roth IRA could offer tax-free growth rather than a deduction this year.
2025 Contribution Limits:
IRA: $7,000 (or $8,000 if you’re age 50 or older) .
401(k): $23,500 deferral limit.
Catch-up contribution (age 50+): + $7,500.
Special catch-up (ages 60-63): + $11,250
Deadlines:
401(k) contributions: December 31, 2025 (or at the end of your employer’s plan-year, if different).
IRA contributions: you generally have until the tax-filing deadline in 2026 (April 15, 2026) to contribute.
2. Review Tax-Harvesting Opportunities
Before the year ends, take a look at your investment portfolio. If certain holdings underperformed, you might consider selling them to realize a loss, a strategy known as tax-loss harvesting. These losses can offset gains elsewhere and potentially reduce your taxable income. Conversely, if you’re in a lower tax bracket, selling appreciated assets could make sense too. This is most effective if you understand capital-gain/loss taxation, wash-sale rules, and how these fit into your broader financial plan.
Deadline:
December 31, 2025 (to realize losses or gains in the current tax year).
3. Take Required Minimum Distributions (RMDs), if Applicable
If you have reached the required RMD age, make sure you have taken distributions as required. Under SECURE 2.0 Act, the age at which RMDs begin was raised to 73 for individuals who were born before 1960. For those born in 1960 or later, it is raised further to 75.
Deadlines:
The RMD deadline each year is typically December 31.
If you turned 73 in 2025, you may delay your first RMD until April 1, 2026, but then you would still need to take the annual distribution for 2026 by December 31, 2026.
If you have a Roth IRA, remember that RMDs do not apply to it during your lifetime.
4. Make Charitable Contributions
If you plan to give to charity, now is a good time to make those donations so they count for 2025. Charitable giving can help reduce your taxable income, especially if you itemize deductions.
If you’re 70½ or older and have an IRA, consider a Qualified Charitable Distribution (QCD), which can satisfy part or all of your RMD while offering tax benefits. Also, if you’re making larger gifts or have substantial taxable gains, a Donor Advised Fund can be a strategic option for smoothing out the tax impact over multiple years.
Deadline:
December 31, 2025 (to qualify for 2025 tax year deductions).
5. Explore Roth Conversions or Backdoor IRAs
If your tax bracket is lower than usual, or you expect to be in a higher tax bracket later, now might be a good time to convert funds from a traditional IRA to a Roth IRA. Though you’ll owe taxes this year, future growth and withdrawals can be tax-free. It can have other benefits, such as lowering your RMDs in future years, but caution needs to be exercised to make sure you aren’t being phased out of tax benefits today, or going over the Medicare IRMAA limits.
For high-income earners, a backdoor Roth IRA strategy may provide access to these benefits even when direct Roth contributions are limited. However, the pro-rata rule may reduce the effectiveness of this strategy if you already have pre-tax IRA balances.
Deadline:
Ideally by December 31, 2025 to complete the conversion and mark it for this tax year.
6. Use Up Your FSA, or Max Out Your HSA
If you have a Flexible Spending Account (FSA) for health or dependent-care through your employer, check your balance. Many FSAs operate under a “use it or lose it” rule and unused funds may not carry into the next year.
If you have a Health Savings Account (HSA), contributions, growth and qualified distributions can all be pre-tax. The balance carries over each year and may even be invested for potential long-term growth.
Deadline:
December 31, 2025 (though some plans offer a short grace period or rollover).
7. Review Your Estate Plan
The end of the year offers a good opportunity to review or update your estate planning documents: wills, trusts, power of attorney, etc. This is especially important if you’ve experienced any major life events (marriage, children, inheritance, etc.).
Also double-check beneficiaries on all retirement accounts, investment accounts, and insurance policies. Because beneficiary designations often override wills, failing to update them can lead to unintended consequences.
8. Reflect on Your Financial Goals for the Next Year
Take a step back and evaluate where you stand financially. Are you on track with existing goals? Do you need to adjust your plan? Are there new goals you want to set for 2026?
This can include revisiting retirement savings targets, budgeting, charitable giving goals, debt repayment, investment strategies, or any other personal financial priorities that matter to you.
Let’s Finish 2025 Strong
Being intentional with your finances now, before year-end, can set you up for a smoother, more secure future. For our clients, we are proactively monitoring these opportunities and updates for you. For those reading this that we aren’t currently working with, if you’d like help reviewing your finances or tackling this list, don’t hesitate to reach out. We’re here to help you start 2026 on solid ground.
We hope you have a blessed Christmas and happy New Years!
*Facts in this article were sourced from www.IRS.gov
Investment advice is offered through Belpointe Asset Management, LLC. 500 Damonte Ranch Parkway, Building 700, Unit 700, Reno, NV 89521.
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