4 Smart Financial Moves to Make Before Year-End

The end of the year is fast approaching, and it is a great time to take control of your financial planning. It is completely normal to feel overwhelmed by financial to-dos, but taking small, proactive steps now can help you feel more confident and in control. Below are four practical strategies you can consider before December 31 to strengthen your financial well-being.

Strategize Charitable Giving

If giving back is part of your annual plan, now is an ideal time to be intentional. Strategies like donation bunching or contributing to a donor-advised fund can help you maximize tax benefits. For those over age 70½, making a Qualified Charitable Distribution (QCD) directly from an IRA allows you to give tax-efficiently, and this donation can also count toward your required minimum distribution once you reach age 73.

Fund Your HSA

If you have a high-deductible health plan, contributing to a Health Savings Account (HSA) can be a powerful financial move. For 2025, individuals can contribute up to $4,300 and families up to $8,550. HSAs offer triple tax advantages: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. These benefits make HSAs helpful for both short-term needs and long-term planning.

Explore Roth IRA Conversions

A Roth IRA conversion allows you to move funds from a traditional IRA to a Roth IRA, paying taxes now in exchange for tax-free growth and withdrawals later. If you expect to be in a lower tax bracket this year, a conversion could be especially valuable. However, this strategy is not right for everyone, and it is wise to reassess it annually based on your unique situation.

Maximize Retirement Contributions

Before the year ends, consider increasing contributions to your retirement accounts. For 2025, the limits are $23,500 for 401(k) plans with an additional $7,500 catch-up for those over 50. Traditional and Roth IRAs allow up to $7,000 in contributions, with a $1,000 catch-up for individuals over 50. These contributions can help reduce taxable income today while building long-term financial security.

Taking a little time now to review these strategies can help set you up for a more secure financial future. Not every step will be right for every person, so it may be helpful to speak with a financial professional or a CPA to determine the best options for your situation. As the year wraps up, consider evaluating your choices or scheduling a financial check-in to start the new year with confidence.