Year-End To-Dos: 2025 Financial Planning Guide

As the year winds down, it’s easy to focus on wrapping up work projects, family plans, and preparing for the holidays.

But reviewing your plan now can help you avoid last-minute surprises – and start 2026 with clarity and confidence. So, before you turn your calendar to 2026, make sure you make time to check in on your financial plan.

Five key areas to focus on before year-end to strengthen your financial foundation and make sure your plan is working as hard as you are:

1. Prioritize December Deadlines

Double-check that your year-end financial tasks are on track, whether you’re preparing for retirement or living it.

Maximize your retirement contributions.

For 2025, you can contribute up to $23,500 to your 401(k) or similar employer plan ($7,500 catch-up if age 50+, $11,250 special catch-up if age 60-63). Traditional and Roth IRA limits are $7,000 ($1,000 catch-up if age 50+).

• Deadline to contribute for 401(k), 403(b), 457, and SARSEPs: December 31, 2025

• Deadline to contribute for IRAs: April 15, 2026

Consider a Roth conversion.

With tax changes ahead and current market performance, year-end may be an opportune time to convert part of your traditional IRA to a Roth IRA. This can diversify your future tax exposure and create flexibility in retirement. To count for your 2025 taxes, the conversion must be completed by December 31, 2025.

Check RMDs.

If you’re 73 or older, or if you inherited an IRA, be sure your Required Minimum Distributions (RMDs) are complete before December 31, 2025. Missing the deadline can lead to a 25% penalty on the amount not withdrawn.

2. Review Your Tax Picture Before It’s Too Late

Taxes don’t have to (and shouldn’t) be a once-a-year scramble. A thoughtful year-end review can help you avoid surprises and identify planning opportunities to minimize your tax liabilities.

• Adjust withholdings or estimated payments if your income changed this year.

• Evaluate tax-loss and tax-gain harvesting to offset realized gains or reset cost basis.

• Make charitable contributions before December 31st to claim 2025 deductions, especially if you’re near an itemization threshold.

• If age 70½ or older, you can make Qualified Charitable Distributions (QCDs) directly from your IRA (up to $108,000 annually in 2025), which count toward RMDs and can reduce taxable income.

For business owners or self-employed individuals, this is also the time to review estimated taxes, retirement plan funding, and potential deductions with your accountant.

3. Reassess Health and Benefit Accounts

Health-related savings vehicles can be powerful tools when used strategically.

• Flexible Spending Accounts (FSAs) generally operate on a “use it or lose it” basis, though some plans allow a carryover of up to $660 into 2026.

• Health Savings Accounts (HSAs) continue to offer unmatched tax advantages. The 2025 contribution limits are $4,300 for individuals and $8,550 for families, with an extra $1,000 catch-up for those 55+.

If you’re approaching retirement, confirm your Medicare coverage and any supplemental plans during Open Enrollment (October 15–December 7) to ensure you’re well positioned for the coming year.

→ HSAs can also become a powerful tool for retirement savings when used strategically. Learn more here!

4. Revisit Risk, Insurance, and Estate Planning

Your financial plan extends beyond your investment accounts. The end of the year is a perfect time to revisit your broader protection strategy.

• Review insurance coverage – homeowners, auto, life, disability, and long-term care – to ensure limits and beneficiaries are up to date.

• Check your estate plan for accuracy. Have there been any major life changes, such as a new child, marriage, or move? Verify that your will, trust, and power of attorney documents still reflect your intentions.

• Review beneficiary designations on all accounts, especially retirement plans and life insurance.

Neglecting to review these can create costly complications later.

5. Rebalance and Reset Your Investment Strategy

Markets move quickly, and portfolio asset allocation drifts – an annual check-in of all your portfolios and their respective allocations is non-negotiable.

• Are you still aligned with your risk tolerance, time horizon, and goals?

• Do you need to reduce concentration in certain sectors or consider alternatives for diversification?

• Have you discussed your 2026 investment outlook with your advisor?

Even small adjustments now can make a meaningful difference over time.

Bringing It All Together

A strong financial plan isn’t about reacting to headlines or rushing before December 31st – it’s about creating habits that compound over time. The end of the year simply provides a moment to pause, measure progress, and set the tone for what’s next.

As 2025 draws to a close, connect with your financial advisor, accountant, and estate attorney to ensure every piece of your financial strategy is coordinated and ready for the new year.

Because while the calendar changes, your goals – and the strategy behind them – should continue to move forward.

Please consult with an attorney or a tax or financial advisor regarding your specific legal, tax, estate planning, or financial situation. The information in this article is not intended as legal or tax advice.