Year-End Financial Checklist: Five Moves to Review Before December 31

As the year comes to a close, now is a great time to take a few thoughtful steps to reduce your taxes, grow your retirement savings, and set yourself up for a strong new year. Use this checklist as a guide to review key areas before the end of the year—and remember, even small steps can make a difference.

1. Maximize Retirement Contributions

Why it matters: Contributing as much as possible to your 401(k), 403(b), or IRA can reduce taxable income and give your savings more time to grow.

2025 Limits:

• 401(k)/403(b): $23,500 (+ $7,500 catch-up if 50+; or super catch-up adding another $11,250 for ages 60–63)
• IRAs: $7,000 (+ $1,000 catch-up if 50+)
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Next steps:

• Check how much you’ve contributed so far this year.
  
• Consider whether increasing pre-tax or Roth contributions fits your goals.
  
• Ask your advisor if after-tax contributions make sense for additional Roth growth.
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2. Consider Spousal IRA Contributions

Why it matters: If one spouse earns little to nothing, a spousal IRA can help both partners increase their retirement savings.

2025 Limits: $7,000 per spouse ($8,000 if over 50)

Next steps:

• Verify eligibility with your advisor.
  
• Contributions should be made before the end of the year to increase household retirement assets.

Even small contributions now can make a big difference later on.
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3. Consider your Roth or Backdoor Roth Options

Why it matters: Even if high-income earners are unable to make direct contributions to a Roth IRA, using a backdoor Roth can help after-tax contributions grow tax-free.

Next steps:

• Talk to your advisor about whether a Roth conversion aligns with your long-term objectives.
• Make sure all conversions are handled carefully to avoid unexpected taxes.
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4. Make a Charitable Contribution Plan

Why it matters: Making donations before the end of the year can lower your taxable income and help causes that are important to you. Donor-advised funds (DAFs) offer grant timing flexibility, and donating appreciated securities may help avoid capital gains taxes.

Next steps:

• Examine your annual giving objectives.
• Choose whether to use a DAF, cash, or securities.
• To make sure donations count for 2025, confirm the timing with your advisor or the charity.
  

Your taxes and the causes you support can benefit greatly from even modest gifts.
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5. Check Your Flexible Spending Accounts (FSAs)

Why it matters: Unused FSA funds may be forfeited at year-end.

Next steps:

• Review your remaining balances for medical, dental, vision, or dependent care expenses.
  
• Schedule eligible expenses before December 31 or check if your plan allows a carryover.
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In Conclusion

Taking a few minutes now to review these five areas can make a meaningful difference for your 2025 finances and help you start 2026 on the right foot. If you’re unsure about any of these strategies, the Farther Focus Team advisors are here to guide you and help you decide what’s best for your personal situation. Don’t hesitate to reach out—we can walk through the options together.

This checklist was reviewed for accuracy by a CERTIFIED FINANCIAL PLANNER™ professional. For personalized advice, consult your financial advisor.