What To Review Before The Year Ends

The end of the year is more than a time for holiday gatherings and reflection. It is one of the most important opportunities to strengthen your financial foundation before the calendar resets. Year-end decisions are powerful, they can lock in tax savings, boost retirement readiness, and help position your finances for greater stability and growth in the year ahead.

As 2025 draws to a close, it is worth taking a look at where you stand. Reviewing your accounts, investments, and broader financial strategy can reveal opportunities that might otherwise go unnoticed. Whether you are fine-tuning a retirement plan, preparing for a transition, or simply trying to make the most of a strong market year, this is the time to get organized and intentional about your next steps.

Here is a comprehensive checklist to help you finish 2025 on solid financial footing.

1) Review your retirement contributions

For 401(k), 403(b), most 457 plans, and the federal Thrift Savings Plan the employee deferral limit for 2025 is $23,500. The standard age-50-and-older catch-up remains $7,500. In addition, for participants who turn age 60, 61, 62, or 63 in 2025 and whose plan allows it, the “super” catch-up contribution limit is $11,250. For IRAs, the 2025 contribution limit is $7,000 with a $1,000 catch-up for age 50 and older.

2) Consider how a Roth conversion fits your situation

Some individuals review whether moving a portion of traditional IRA assets to a Roth IRA is applicable based on their tax bracket and future expectations. The specifics depend on personal tax factors and should be discussed with a qualified professional.

3) Take required minimum distributions (RMDs)

Individuals who are age 73 or older generally must take their 2025 RMDs by December 31, 2025. If an RMD is missed the excise tax is 25 percent, potentially reduced to 10 percent if corrected quickly.

Qualified Charitable Distributions (QCDs) from IRAs may count toward RMDs for eligible individuals.

4) Evaluate charitable giving strategies

Charitable contributions remain a way for many people to integrate personal giving and tax planning, such as donating appreciated securities or using donor-advised funds.

In some cases, individuals who use QCDs from IRAs (age eligibility and other criteria apply) may align those distributions with charitable goals.

5) Review health and insurance coverage

For Health Savings Accounts in 2025, the contribution limits are $4,300 for self-only coverage and $8,550 for family coverage. An additional catch-up of $1,000 is allowed for age 55 and older. These apply only if the plan qualifies as a High Deductible Health Plan.

6) Update your estate plan

Life changes such as marriage, divorce, home purchase, or new family members may require updates to wills, trusts, powers of attorney, and beneficiary designations. A review now can help ensure your documents reflect your wishes.

7) Check benefit projections from Social Security

The full retirement age for most people remains 67 years for those born in 1960 or later. The cost-of-living adjustment (COLA) for Social Security benefits payable in 2026 is 2.8 percent. If you are a current or future Social Security beneficiary, checking your projected benefit amount and how it integrates into your broader retirement plan may be worthwhile.

8) Plan for 2026 tax and legislative changes

Several tax-law provisions and retirement-saving rules modify after 2025. For example, the “super” catch-up contribution of $11,250 applies only if your employer plan allows it.

Staying aware of upcoming legislative changes can help frame decisions now.

Final thoughts

Year-end planning is about intention and timing. A focused year-end review can align your savings, benefit expectations, tax posture, and priority goals for 2026.

As always, it is important to consult a tax or investment professional before making these important decisions.