Planning Ahead: 4 Must-Do Financial Moves Before Year-End

The end of the year is fast approaching, marking an ideal moment to take control of your financial planning. It’s completely understandable that financial tasks can sometimes feel overwhelming. However, there is genuine empowerment in proactive decision-making, and we’re here to make it easier. This article will help identify four smart, actionable strategies to improve your financial well-being before December 31st.

Explore Roth IRA Conversions

Roth conversions involve moving funds from a Traditional IRA to a Roth IRA, and doing so means paying taxes now rather than later. If you've experienced a lower tax bracket this year, it might be an opportune moment for a conversion. However, it's not suitable for everyone, and this decision should be reevaluated annually based on your personal circumstances.

Strategize Charitable Giving

There are clever strategies to maximize the impact of your charitable giving, such as donation bunching or using a donor-advised fund. If you’re over age 70½, consider a Qualified Charitable Distribution (QCD) from your IRA, which can notably count toward fulfilling your required minimum distribution when you reach age 73. Giving smart not only supports good causes but can also help in managing your taxable income.

Maximize Retirement Contributions

For 2025, remember the contribution limits for retirement accounts: $23,500 for 401(k)s (plus $7,500 catch-up if you’re over 50), and $7,000 for traditional/Roth IRAs (plus $1,000 catch-up if over 50). Seizing these opportunities now can greatly aid in reducing taxable income while building future wealth.

Fund Your HSA

Health Savings Accounts (HSAs) are powerful tools with triple tax benefits: contributions are pre-tax, growth is tax-free, and withdrawals for qualified medical expenses are tax-exempt. The 2025 HSA limits are $4,300 for individuals and $8,550 for families. Contributions can be an integral component of both short-term and long-term financial planning.

Remember, taking just a little time now to evaluate these strategies can make a significant difference in your financial outcomes for the year ahead. Not every strategy will be suitable for everyone, and it's advisable to consult with a financial professional or certified public accountant (CPA). We invite you to assess your options or consider scheduling a financial check-in to ensure you're on the best path forward.