Planning Ahead: 4 Smart Financial Moves for Year-End

The Year-End Countdown: Time to Take Control

As the end of the year fast approaches, it’s easy to feel overwhelmed by all the financial tasks looming on your to-do list. Yet, taking charge of your finances now can be incredibly empowering. In this article, we’ll help you identify four smart, actionable strategies that can improve your financial well-being before December 31st.

Explore Roth IRA Conversions

Have you considered converting your traditional IRA to a Roth IRA? Roth conversions might be especially beneficial if you find yourself in a lower tax bracket this year. This move can help offset the taxes you'll pay on the conversion amount. However, it's not a one-size-fits-all strategy and should be evaluated annually based on your unique circumstances.

Strategize Charitable Giving

As the year-end approaches, it's wise to consider charitable giving strategies. Try donation bunching or setting up a donor-advised fund to maximize your gifts' impact. If you’re over age 70½, think about using a Qualified Charitable Distribution (QCD) from your IRA, which can also satisfy your required minimum distribution once you turn 73.

Fund Your HSA

Health savings accounts (HSAs) offer powerful benefits, thanks to their triple tax advantages. For 2025, you can contribute up to $4,300 as an individual or $8,550 for a family. Funding your HSA can help cover immediate medical expenses while also serving as a long-term investment tool.

Maximize Retirement Contributions

Take advantage of your 401(k) by maxing out contributions for the year. In 2025, that means contributing up to $23,500, with an additional $7,500 catch-up if you're over 50. Similarly, consider contributing to a traditional or Roth IRA, with limits of $7,000, plus a $1,000 catch-up if over 50. These opportunities are great for cutting down taxable income and building future wealth.

Taking a bit of time to focus on these strategies can lead to significant benefits in your financial outcomes as the new year rolls in. Remember, not every strategy suits everyone, so consult with a financial professional or CPA as needed. Evaluate your options or schedule a financial check-in to stay on track.